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  • First Post: Nov 15, 2006 1:33pm Nov 15, 2006 1:33pm
so all those overbought/oversold indicators like rsi, stoch, cci, etc.

Do you agree that these indicators are especially useful for fade traders.
Working towards CME membership
"Absolute Truth vs. Relativism
While absolute truth is a logical necessity, there are some religious orientations (atheistic humanists, for example) who argue against the existence of absolute truth. Humanism's exclusion of God necessitates moral relativism. Humanist John Dewey (1859-1952), co-author and signer of the Humanist Manifesto 1 (1933), declared, "There is no God and there is no soul. Hence, there are no needs for the props of traditional religion. With dogma and creed excluded, then immutable truth is also dead and buried. There is no room for fixed, natural law or moral absolutes." Humanists believe one should do, as one feels is right."

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Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
Trading indicators are useful, but they are not everything! For being a good trader it’s very important to understand the market sentiment! That’s the importance of technical and fundamental analysis in the Financial market!
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
100% agree.
Naked chart and your eye is all you need. Your eye is your best indictor.
I find indicators useful, but that is not always the case for all traders. What is true for me, regarding indicators, may not be necessarily true for you.
Quoting mlawson71
I find indicators useful, but that is not always the case for all traders. What is true for me, regarding indicators, may not be necessarily true for you.
I agree with your opinion! Most of the time, trading indicators loss their momentum and produce many false signals! This is why, I rely on mainly fundamental analysis! Yes, I seem fundamental analysis is much reliable than indicator based trading!
Quoting GeorgeBaile
{quote} I agree with your opinion! Most of the time, trading indicators loss their momentum and produce many false signals! This is why, I rely on mainly fundamental analysis! Yes, I seem fundamental analysis is much reliable than indicator based trading!
can you tell how you analyze fundamental. thanx
Point is that a market cannot be oversold or overbought. It can always move higher or move lower, depending on the fundamentals and the sentiment of the traders.

So I personally think such Indicators are pretty useless.
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
not all as is the trading books say, but with certain exceptions....YES!!
there is always, always another trade!!
Quoting GeorgeBaile
{quote} I agree with your opinion! Most of the time, trading indicators loss their momentum and produce many false signals! This is why, I rely on mainly fundamental analysis! Yes, I seem fundamental analysis is much reliable than indicator based trading!
I don't think it has anything to do with momentum, different indicators just use different algorithms to calculate them.
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
Sessions have an impact on validity on breakouts. Asian sessions breakouts are usually short strung. They are one hit wonders.

Sydney closes tend to follow suit.

London open breakouts are fast and momentum is strong.

So is New York open. So overbought and oversold are precursor to inevitably. But the problem is when. News. That's when.
You're going to pay a price for every bloody thing you do and don't do
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
Maybe, but I have very much frustrating experience with the custom & default trading indicators! This is way, now I am doing my live trading only based on my Price Action trading knowledge & experience.
Quoting GeorgeBaile
{quote} Maybe, but I have very much frustrating experience with the custom & default trading indicators! This is way, now I am doing my live trading only based on my Price Action trading knowledge & experience.
I mostly use price action as well, although sometimes I find indicators like the RSI and BB and MA useful.
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
Indicators are useful but not the whole thing. Only charts are also very important. There is much more thing than indicator. It is the mind. Sometimes you just know it's going to work. With time you get an understanding of trading. That understanding is beyond everything.
Quoting AgusKurniaw
{quote} Indicators are useful but not the whole thing. Only charts are also very important. There is much more thing than indicator. It is the mind. Sometimes you just know it's going to work. With time you get an understanding of trading. That understanding is beyond everything.
I completely agree with your opinion! Chart is much important than the technical tool! This is way, I focus on the Price Action trading strategy, it’s my key.
Pure price action is also a form of technical analysis though? Or you mean it without additional tools?
No indicator is perfect but if you learn how to combine the best and practice, you can build a robust Forex trading strategy for success.
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
how useful the indicators are totally depends on they fit in your overall strategy. An oversold RSI can mean it's a good time to buy if you're on the bottom of a trading range or a pullback. But it could also be a sign of a strong bear breakout. It depends on other factors, but in general you may be right that most people use the oscillators to fade the short term move.
It all depends how expert you are to use them. Some only like price action. Some people like to trade with indicators. In both groups there are successful traders. I think that everything depends on your understanding and what you find easy to go with.
Quoting hilmy83
so all those overbought/oversold indicators like rsi, stoch, cci, etc. Do you agree that these indicators are especially useful for fade traders.
for the simple fact that overbought, oversold are all terms which doesnt respresent price action at all, it would make trading it completely worthless.
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