How to keep it simple? Some indicators to look for

We shall try to go through a few methods of trading by using simple measures like moving averages, overbought / oversold indicators and their divergences with price etc.

Let us look at moving averages to start with.

To know more about moving averages you may see this:

Moving averages as you may see come in various flavors, simple, weighted, exponential etc.

I have been using exponential moving averages as they seem to fit my mentality, I like a signal a little earlier than the simple averages.

You may try some of the methods listed in the link above to see what suit your temperament and the markets that you trade in.

What needs to be remembered is the moving average crossovers happen after prices move substantially. If it is a failed signal (due to higher/ lower time frame deciding against it) the losses will be wider.

So the simple tool can result in simple profits or simple loss!!

Anyway it is easier to digest simple loss than complex analysis driven loss- because by that  time your brain would have gone mad with the analysis, and then top it up with a loss; you will be madder. Few occasions like that and you will be senile.

So let us use simple methods and keep our sanity if not our money.