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Answer:
1. A couple of technical indicators should be sufficient, otherwise you'd suffer from "paralysis by analysis" wherein you get so many conflicting signals which disable you from taking a trade. Probably a combination of a leading and lagging indicator should do. Taking note of historical and psychological support and resistance levels should also help.
2. When using a purely mechanical system, I stick by the rules. This means that, when one of the technical indicators go against the trade idea, I'd stay out and sit in the sidelines.
3. I haven't tried incorporating chaos and fractals in my trading system since I think that could complicate things too much. Besides, I don't think a lot of traders study those. I'd rather stick with the commonly used indicators since those have "self-fulfilling" properties.
4. I usually start with gauging the market sentiment and the fundamental standing of the economies before starting my technical analysis. What I do is pair a currency with weak fundamentals with one that has strong fundamentals.
Hope my answers help!
