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  • Indicators work. But you just don’t know how to use them

    From tradeciety.com

    One of the greatest misunderstandings in retail trading is the (mis)interpretation and the (ab)use of indicators – the second biggest one is the myth around stop loss placement. Today we want to do away with the mystification and misunderstandings around indicators and we will provide a new and different way of looking at trading with indicators. Hopefully we can help stop the madness that is going on between price action and indicator supporters. What indicators don’t do: Indicators don’t provide signals The first point is also the most important one and it is the main reason why so many traders never seem to ... (full story)

This is my personal opinion. If the author of this article would have conducted a study on any decent indicator: Ichimoku, the one I use, he would not be saying: "Indicators don't provide signals". Sorry but Stochastics, MACD, and the like all provide no insight for me; all they are showing to me is what I can already see with the help of the candlesticks: price going up or down. Even trading the standard settings Ichimoku on a daily chart will bring you profit.
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the indicators in just a fancy way to show the price action that controled dy the market behavior
Dude, I am sure the Cool-aid tastes nice.

The fact remains that Indicators simply INDICATE. Nothing more, nothing less.

After something has been INDICATED, it is actually the next tic of data that matters, and in Forex, shit can and does happen in one heart beat.

Almost all indicators lag, meaning that the data they represent in the "current now" is based on what has just happened before in the "recently just happened". This makes them flawed because they are reporting WITHOUT consideration of the changing time of day - no Forex sessions are the same.

Other indicators consider NOT just the immediate past moments in time. Mine do NOT.

But ALL indicators only INDICATE. There's no God shit going on with them.

Quoting bdebaere
This is my personal opinion. If the author of this article would have conducted a study on any decent indicator: Ichimoku, the one I use, he would not be saying: "Indicators don't provide signals". Sorry but Stochastics, MACD, and the like all provide no insight for me; all they are showing to me is what I can already see with the help of the candlesticks: price going up or down. Even trading the standard settings Ichimoku on a daily chart will bring you profit.
any opinion for the US announcement in 15 mins
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I have found that GANN is the most reliable leading or trailing indicator.
  •  Guest
  • | IP XX.XXX.71.23
Yes, they do, on historical charts
This article supports my view, a player cannot just 'use' an indicator, all indicators must be studied for their effectiveness and usefulness (to you).
Carbon-Dioxide: the gas of life!
1 of best articles.



I like it..


yes indi will not give you signal to buy or sell..... you are the one who will decide to make the trade when the indi is in an area you understand its direction....
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
same thing different perspective, but in the end they use indicator to decide
Quoting dancingphil
Dude, I am sure the Cool-aid tastes nice.

The fact remains that Indicators simply INDICATE. Nothing more, nothing less.

After something has been INDICATED, it is actually the next tic of data that matters, and in Forex, shit can and does happen in one heart beat.

Almost all indicators lag, meaning that the data they represent in the "current now" is based on what has just happened before in the "recently just happened". This makes them flawed because they are reporting WITHOUT consideration of the changing time of day - no Forex sessions...
I never argued that indicators do not lag: everything does. Every buy or sell is based on previous facts because no one at the bottom knows for sure what will happen next. I am merely saying that I am definitely using one of them for buy and sell signals.
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  • | IP XXX.XX.0.145
Indicators give you an idea of what other people may be thinking. You are trading other people. trading is where you may want to be generic (or at least aware the generic) and indicators can help you with that.
price action around certain technical levels are human response to the history around those levels. Indicators have been created based on these history. and people will always buy and sell at breakouts on 1mins,5mins, 15mins etc charts Before major news, price will allways hover close to technical breakout points. Whether support or resistance is broken depends on the actual data by Yellen, Draghi and co. nothing is however certain and where price willl end depends on Draghi and co. We are all players following instruction( trend) and anybody not listening to the instruction(trend) can kiss their money goodbye
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After spent 7 years in this'Trading' stuff, I don't understand why people goes around twenty sites to explain trading styles OR even wants to sell books If one knows that much, why people don't keep millions in their account AND make trillion.
That's a business, selling books & journal, after knowing everything-- does not go together.
My new year agenda is for first few months I like to trade JUST without listening anyone"s opinion nor reading any damn"n article from anywhere.
Just look at the chart & enjoy trading
All indicators lag

They draw based on a combination of averages.

Predictive indicators typically repaint, so what you see on candle #1 will often have changed on candle #3, 4, 5 .........

Pick your favorite indicator - less is better than more, unless you want to see a bunch of conflicting signals - learn how to use candlesticks - pick the time frame that you are comfortable with - pick the currency pair that gives you the best results for your set up and live test the heck out of it before going live.

OR - find a really good thread from one of the Trading Systems in the Forum section - select by # of replies and check out some of the commonly used set-ups
"To live with Passion, it takes Courage and Grace to survive"
I am with you there @dkrock! Just like a certain guy called Bollinger used ordinary statistical standard deviation we all learnt at school and calls it a "Band".

@bdebaere; Ichi does not predict the future! It is just an extension of MACD nothing more.

I personally use intuition to trade. How do I acquire it? Daily training! Do not underestimate the powers of your brain! So many things I have come to know before reading about them. E.g.: From the get go I never and will never use SL, as it is equivalent to sitting on a poker table with your cards wide open for others (SM/MM) to see!
Actually, you are VERY wrong. It is NOT true that ALL indicators lag. Most do, but not all.

For example, any simple indy that paints the Daily Pivot, and its extensions are NOT lagging indicators - they are using history data to do their job.

My own most favorite indy is NOT lagging, but I won't be discussing it here. I built it, and I'll be keeping that secret for use within my group.

And, repainting indies are not indies. They are simply an air-brushing change of events happening in the current moment.

Quoting Britpip7
All indicators lag

They draw based on a combination of averages.

Predictive indicators typically repaint, so what you see on candle #1 will often have changed on candle #3, 4, 5 .........

Pick your favorite indicator - less is better than more, unless you want to see a bunch of conflicting signals - learn how to use candlesticks - pick the time frame that you are comfortable with - pick the currency pair that gives you the best results for your set up and live test the heck out of it before going live.

OR - find a really good thread...
  •  Guest
  • | IP XXX.XXX.252.140
Indicators provide no value whatsoever....Price is king and price is only controlled by the large financial entities (think central banks, banks large funds etc.) retail traders do not move price never have never will. The large traders move price to where THEY see value and remember they trade hundreds of millions not simple lots...That being said these large institutions can not hide their entries nor can they place their orders all at once thus they leave a finger print....study the charts and find this finger print and ride their coat tails.
Quoting Guest
Indicators provide no value whatsoever....Price is king and price is only controlled by the large financial entities (think central banks, banks large funds etc.) retail traders do not move price never have never will. The large traders move price to where THEY see value and remember they trade hundreds of millions not simple lots...That being said these large institutions can not hide their entries nor can they place their orders all at once thus they leave a finger print....study the charts and find this finger print and ride their coat tails....
You nailed It )
An indicator is like a surgeon's scalpel - in the right hands it can be used effectively, but in the wrong hands it is not only useless, it is lethal. If you risk your money without sufficient knowledge and experience of the market, whether using indicators or not, you are merely fodder for the industry.
Quoting Guest
Indicators provide no value whatsoever.....
Nonsense, the rest I agree with.
Price, support,resistance,supply, demand,where are the institutions waiting with buy sell orders.Accurate reading of candlestick charts, trend,time of day, London open, New York open, Patience, intuition,personal discipline, correct nutrition, exercise, sensible sleep patterns, dedication,good education from a solid well established education centre who has long term back up,joining a trading group in your area (in uk easiest way is via "Meet Up") mix with other traders.Never discuss trading with anyone other than another trader who is knowledgeable about trading. With all that lot one should be able, over time, to set up a plan and a journal and having studied and spent at least 5000 hrs viewing and learning how price moves and why you have a chance of trading profitably.
Once you have a solid proven plan etc do not change it and learn from every trade (that id what the journal is for) Price and institutions intentions are the big ones to understand.Go visit a trading floor and watch ,observe,mix with professional traders. This all helps.It is freaking hard to become a trader and even harder to become a profitable one. However, it can be done Slowly slowly build your business and you will get there.
As churchill said "Never quit,Never quit,Never,ever Quit" Hang in there and learn.Knowledge is power. Positive attitude. Live in the real world.Pay attention to the chart all the info is there on the chart. That is where all the freaking indicators are born surely? Good luck!
The fact remains that Indicators simply INDICATE. Nothing more, nothing less.

After something has been INDICATED, it is actually the next tic of data that matters, and in Forex, shit can and does happen in one heart beat.

Almost all indicators lag, meaning that the data they represent in the "current now" is based on what has just happened before in the "recently just happened". This makes them flawed because they are reporting WITHOUT consideration of the changing time of day - no Forex sessions...


Nice talk
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  • Posted: Dec 17, 2015 7:19am
  • Submitted by:
     Newsstand
    Category: Educational News
    Comments: 22  /  Views: 7,893