Profitable Forex trading system and the Most important indicator in your chart
Many traders, even those with experience use systems based on at least one of the Top five indicators which fall into one of two categories; Leading or Lagging:
Moving Avarage - A Lagging indicator
Stochastic - A Leading indicator
MACD - A Lagging indicator
RSI - A Leading indicator
Bollinger Bands - A Lagging indicator
Leading indicators are inappropriately named because none of them lead with any form of reliability. If this was not true then all traders would simply Buy an Oversold market and Sell it when it was Overbought, and vice versa. Systems based on Leading indicators do not work for one simple reason – None of them lead with any form of reliability.
Lagging indicators and systems based on them are ineffective because, as the name suggests – They lag.
The Forex Mean Reversion System is based on the Forex Mean Reversion Indicator – It is neither a Leading or a Lagging indicator – It is a real-time indicator that is based on a fundamental fact.
It provides a true indication of when a market is Overbought/Oversold – On ALL instruments across ALL time-frames.