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Thursday, 24 December 2015

Trading Strategy based on Indicators like Parabolic SAR, RSI and ADX-Money Classic Research

Different Traders trade on different strategies to trade effectively in the Stock market. The traders are always on the lookout for the strategies which are risk free and provide high rate of accuracy. It is a known fact that no strategy is 100 percent correct and there is some degree of risks associated with every strategy. However the risks can be minimized in a variety of ways and the trader can trade effectively making an overall profit. The traders can rely on advisory firms for the accurate equity tips and intraday trading Tips.
One way of minimizing the Risks is to use more than one indicator at a time and get the conformity of the buy and sell signals. For example one can use the indicators Parabolic SAR and RSI together. Other way is to use Parabolic SAR and ADX together.
Parabolic SAR is a trend following indicator. It indicates the current trend and helps in following the current trend. It can be used along with RSI to confirm the buy and sell signals. RSI helps the trader to determine the overbought and oversold levels and also to understand the current trend.
Similar to the above strategy the parabolic SAR can also be used with ADX for the confirmation of the Buy and Sell Signals. The current trend will be ascertained by the parabolic SAR and the strength of the trend can be confirmed with ADX. The value of the ADX will determine whether the trend is a strong trend or is a weak one. Thus the trader can be sure to trade in the case of Strong Trend and can limit himself to take risks in case of weak trend.
The above strategies are used by the Technical analysts of various advisory firms to generate accurate Stock market tips in the form of buy and sell calls. Money Classic Research is one such advisory firm which is SEBI registered and very reputed.

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