You should know that there are two key criteria that you should program rules for. I just mean your market exit and market entry. You can make use of a great number of technical indicators for the purpose of timing all your trades. But in fact you don’t need to use all indicators. Using a couple of them will be enough if you employ an automated trading system.
Professional Forex traders already know that simple trading systems track the deviation of price. Perhaps you use this famous Bollinger Band on a regular basis. This technical indicator normally depicts a mid average band. It also has two outer lines. Each time volatility goes up the bands simply widen away right from the average band. These days it’s not a problem to make a very simple volatility system meeting your requirements.
Besides this you need to pay enough attention to testing moving averages. Don’t forget about deviation settings for the outer bands. You can do it almost instantly with the help of reputable Forex trading software. A spread of currencies should be thoroughly selected. Just test it in order to make sure that it’s quite effective.
To cut a long story short in a strong bull trend, prices greatly differ from an average price. But at the same time they search for a solid support against the average. So if volatility makes prices go through the mid band right to the outer bottom band then you should know that the demand and supply situation is likely to change from bullish to bearish. In other words it’s high time to place a stop.
Certainly you need to do a bit of research on the initial stage. Having done this you can certainly add additional filters. You require some practice and patience and perhaps a bit of luck to succeed. I hope you’ll meet this objective.
Traders might find this info on managed forex trading useful as they need to manage their activities somehow. Actually they can regularly search the Internet for Forex investments to get even more helpful details.