Dynamic Indicators:
Usually explain this technique, we recommend if you are looking to strengthen its strategy.
The technique is to put aside for a moment, studying the price curve and focus on the analysis of the indicator lines on its own chart. So we know that every record on its midline a strategic point, which when broken provides signal or acceleration of market prices, but sometimes we forget the technical chart analysis on the indicator to us of the forecasts possible action of the price. Thus, trend lines, convergences and divergences, and supports and resistances that no Fibonacci lines on the indicator are the best exercises to predict early changes in trends.
Let's see how it works:
In the figure above, the GBP / USD daily chart, we note that following the behavior of the trend lines on the Momentum indicator, there is a break in the trend lines (the indicator), which anticipates a further breakdown of price trend lines. If we begin by joining two of the minimum upward or two of the top on down and a third in both cases to confirm the rupture of the line, is designed a dynamic index of price level to be considered for future market entry, or an interesting chart analysis filter.
When you have a guideline to stop working at the time, keep your profile and get future levels of support or resistance for the price to beat.
