The popularity of combinations of technical analysis strategies can vary over time and depend on market conditions, trader preferences, and the specific asset being traded. However, some combinations of strategies are commonly used and have a good track record among traders. Here are a few popular combinations that you will be able to find for ProRealTime, MetaTrader (or MT4) or TradingView platforms:
- Moving Averages and RSI:Many traders combine moving averages with the Relative Strength Index (RSI). Moving averages help identify trends, and RSI helps identify overbought and oversold conditions. Traders may use crossovers of moving averages along with RSI readings to make trading decisions.
- Support and Resistance with Breakout Strategies:Combining support and resistance levels with breakout strategies is a popular approach. Traders look for price to approach key support or resistance areas and then use breakout patterns to enter trades when those levels are breached.
- Candlestick Patterns with Moving Averages:Traders often use candlestick patterns in conjunction with moving averages. For example, they might look for bullish candlestick patterns (e.g., Bullish Engulfing) near a rising moving average as a potential entry signal.
- Fibonacci Retracement with Trendlines:Fibonacci retracement levels are often used alongside trendlines. Traders identify trends using trendlines and then use Fibonacci retracement levels to find potential support or resistance areas within the trend.
- Ichimoku Cloud with RSI:The Ichimoku Cloud is a comprehensive indicator that includes various elements for trend analysis. Traders may combine it with RSI to confirm trends and overbought/oversold conditions.
- Moving Average Crossovers and MACD:Combining moving average crossovers (e.g., a shorter-term MA crossing above a longer-term MA) with the Moving Average Convergence Divergence (MACD) can provide trend confirmation and momentum signals.
- Elliott Wave Theory and Fibonacci Extensions:Some traders who follow Elliott Wave Theory use Fibonacci extensions to project potential price targets for wave patterns. This can provide both direction and price level information.
- Volume Analysis with Divergence:Traders often incorporate volume analysis with divergence strategies. They may look for volume spikes or divergences between price and volume to identify potential reversals.
It’s important to note that there’s no one-size-fits-all combination of strategies that works best for all traders or in all market conditions. Successful trading involves adapting your strategy to the specific asset you’re trading, your risk tolerance, and the prevailing market conditions. Additionally, traders should thoroughly test and practice any combination of strategies on historical data and with a demo account before implementing them in live trading to ensure they are comfortable with the approach and its performance.
At MetaSignalsPro, we have tested them all and we have tailored our tools that take the best of all these combination in order to make your decision easier, faster and safer.
Check our solutions for ProRealTime, MetaTrader (or MT4) or TradingView platforms: