Chief Shaun puts in his two pips’ worth for FX Trader Magazine
Posted by Orli Perez in Team Currensee, tags: FX Trader Magazine, RSI indicator, Shaun Downey, Stochastic indicator
In case you haven’t picked up FX Trader Magazine yet (how could you miss it?), Currensee’s very own Chief Market Analyst and Head Pip Shaun Downey is featured in the latest edition covering the true meaning of overbought and oversold. As a newbie trader myself, one of the first concepts I drilled into my head was the Stochastic 80/20 and RSI 70/30 rules for identifying overbought and oversold. It’s simple, it’s concrete, and best of all, it relies less on my instinctive aptitude as a trader and more on my ability to read a semi-complex chart.
Is the ideal trading strategy built on the backbone of Stochastics and RSI? No, and Shaun will be the first to tell you these indicators by themselves can be “lazy and inaccurate”. But then again, you can really say that about pigeonholing yourself to any one indicator as a tell-all trading signal. From the MACD to Elliott Wave, every indicator can only tell you so much.
According to Shaun,
“The indicators of choice have limits of scale and the market in theory can move anywhere and often can do it very quickly.”
The most experienced traders spend years tweaking, abandoning, and perfecting trading strategies that are not only the right mix of indicators, but also weighing the importance of those indicators. It’s part alchemy, part art form.
If you haven’t come across Shaun’s take on overbought and over sold, we suggest reading it. If you want to see what strategies keep thousands of Forex traders tickin’ and pippin’, join them.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
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