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Discovering the "Best" Indicator to Use
The first thing to remember when using an indicator, any indicator, is that it is a function of price action. The indicator itself is not the ultimate tool when it comes to trading…it comes in behind price action. Price action governs the information that the indicator will ultimately provide on the chart. Price action is Indicator #1. As such, a trader must determine what price action is doing (i.e. the trend) before consulting the indicator for an entry signal. Once the trend is determined, the trader can then consult the indicator for an entry signal in the direction of the trend. Now, let’s take a look at the ... (full story)
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- Apr 26, 2012 5:23am Apr 26, 2012 5:23am
- johnel
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- maxtrader
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Indicators always obey Price, not the other way.
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- Apr 26, 2012 12:35pm Apr 26, 2012 12:35pm
- flyingiguana
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