It’s important when trading to understand what is putting the odds in our favour. I attach some slides which explain what is behind the Pips Predator – the MACD and why it works in terms of generating signals.
I want mentoring to be via email, slides, videos, webinars and these series of emails will do exactly that exclusively for my Pips Predators Subscribers.
And on the subject of mentoring – I’ve got a video for you here:
Also a great apprentice question and my answer:
Question: I remember reading an email of yours a while back, where you were mentioning the best forex pairs to use with the indicator.
Unfortunately I can’t seem to find that email anymore. Would you mind running over the currencies again for which the indicator is most suitable and why.
Also, would you advise using any other indicators, e.g. bollinger bands, with your indicator or would that just restrict thing or make it more complicated?
Answer: Although the indicator works
on all currencies and time frames – some currencies are less volatile at certain times. Data shows these currencies are the least volatile:
- AUD – CAD – NZD
- Best times – outside UK working hours
The reason is in the busiest currencies eg GBPUSD at the busiest times ie 0900-1700 UK time – so many people are pushing the markets in different directions that you don’t get smooth trends.
Whereas GBPAUD or USDAUD tends to be smoother. That’s based on data.
You see the indicator looks for signals based on what is happening in the market. And if the market is volatile it still tries to navigate the market as it finds it. A bit like a 4×4 on rough terrain. But a good drive may well want to avoid the rough terrain until an expert driver.
Brilliant question on using other indicators too (don’t forget www.pipspredator.com – and the materials on there cover all of this, but happy to answer personally too 1-2-1 as I know it’s quicker this way, also if one apprentice has the query, another must too – so happy to). You see we want to find trades with the best odds of a trend/momentum. To do this we want to look at measures of momentum. Some of these measures are inter-related and overlap so do not count as adding weight eg Simple and Exponential moving average – if both confirm a buy for example, that is not two pieces of evidence. Also all indicators measure across different time frames. So one may show the price is losing momentum eg RSI, but another show it is strong eg MACD. That is not that RSI is wrong, it is just it is measuring across a different time frame and not the same thing. So in choosing our indicators, I picked those which had the best weight, accuracy, confirmation of working. There is nothing wrong with looking at multiple other ones, but the problem is ‘paralysis by analysis’.
