How to design a trading system

The structure of the trading system should be focused on the market behavior, or rather on the trend movement. To do this, you first need to understand the components and life cycle of the trend. Taking into account the previously described behavior of stock marketers, and therefore the price movement, we can assume that at any time the markets consist of three trends. The first trend is the longest, consisting of several months, and should be used to determine the direction of the market, and in the direction of which you need to open positions. The second observed market movement may be a trend correction, which will consist of several days, and which is determined by the use of more sensitive indicators. The last movement of the market is a bit like a sideways trend, located between the correction and the continuation of the main trend is the shortest price movement in one or two days, used for accurate entry. For an accurate exit, this short-term movement should also be used, but in this case the main trend will be replaced not by a correction, but by a new trend in the opposite direction. Following this understanding of the market, to open a position, you need to use two or more trend indicators that signal the opening of a position, and an oscillator and or trend indicator to close a position. A more detailed description of the use of these indicators is provided below.