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I want to study indicators in detail

  • #21
  • Jun 30, 2017 2:17am Jun 30, 2017 2:17am
If you want to make real money from this financial market; then my suggestion is; please concentrate on news analysis mainly than trading indicator! I have used almost all of default trading indicators and many custom indicators; but no good result! Now I use only news analysis in my trading.
  • #22
  • Jun 30, 2017 3:26am Jun 30, 2017 3:26am
- Use leading indicators, like trend lines and Fibonacci Retracements.
- Don't jump into a trend late on the lower time frame charts (1H chart and below)
'For the market to work, it needs people who think that they can beat it.'
  • #23
  • Jun 30, 2017 7:13am Jun 30, 2017 7:13am
Quoting AlastorFate
- Use leading indicators, like trend lines and Fibonacci Retracements. - Don't jump into a trend late on the lower time frame charts (1H chart and below)
If you know the end of a trend you're a genius and you're far from that.
  • #24
  • Jun 30, 2017 7:21am Jun 30, 2017 7:21am
Study to deinstall all indicatores is the way to go!
No need for this.
Perfection is the enemy of good enough!
  • #25
  • Edited 7:50am Jun 30, 2017 7:27am | Edited 7:50am
Quoting tradability
{quote} If you know the end of a trend you're a genius and you're far from that.
Lower time frame, master trader.

You don't predict or know the next move, you anticipate/speculate with charting and technical tools, and always be prepared to be wrong.
'For the market to work, it needs people who think that they can beat it.'
  • #26
  • Jul 1, 2017 1:40am Jul 1, 2017 1:40am
Quoting AlastorFate
{quote} Lower time frame, master trader. You don't predict or know the next move, you anticipate/speculate with charting and technical tools, and always be prepared to be wrong.

Lower time frame does not equate to end of trend master disaster, it means nothing but a possible retracement/turn. Nothing assures anyone of end of trends especially when a market can move rapidly against any time frame or theory you have in a swift move. With much experience this become clearer to you, so stick with it for another decade or 3 which is what you are missing.
  • #27
  • Jul 1, 2017 2:28am Jul 1, 2017 2:28am
Choose only a handful of currencies..............get to know them well, really well (how they react to news etc) and only trade those few; don't expect to master all because it is impossible.

Keep it simple, less is more..........

Intuition, which comes from experience, will eventually play a large role.

Be very weary of all advice.............if we were all that clever we would be very wealthy...........
  • #28
  • Jul 1, 2017 7:36pm Jul 1, 2017 7:36pm
Learn price action. no indicator is greater than what the charts will tell you.
  • #29
  • Jul 2, 2017 2:24am Jul 2, 2017 2:24am
Quoting skhang
Learn price action. no indicator is greater than what the charts will tell you.
LOL @ you. Charts tell you what happened in history, after all you can only develop charts based on results. So with or without them will not influence your next trade (only in your mind it does). Trading is an independent event of charts or indicators, since charts and indicators are a different representation of past data and only external news influences moves price.
  • #30
  • Jul 2, 2017 5:16am Jul 2, 2017 5:16am
Whether a trader decides to learn to solely trade off a bare chart (price candles) OR on certain indicator combinations, it still takes h-im/er to the same point.
They both reflect what happened in the past! Nothing ever certainly tells what's going to happen next.
Even Supply & Demand levels (most 'glorified') are drawn following what happened in the past.
___
I know there are pretty good profitable traders from both camps.
___
Bottom line, experience! Nothing beats it.
Good luck
L.L.L.T
  • #31
  • Jul 2, 2017 8:47am Jul 2, 2017 8:47am
The problem with asking for help/direction on a forum like this is that you will get a whole range of opinion...indicators don't work/indicators do work/do this/don't do that etc etc. You will end up back where you started only more confused.

Truth is, what works for me may not work for you. I use indicators, others don't, but all successful traders that I know do use them to a greater or lesser extent.

You have to be self taught in this business, and so it will be entirely up to you which system you eventually settle with, and it will take you quite some time before you find what works for you.

One thing I will tel you for certain though, and that is to ignore anyone who tells you that this or that doesn't work, because this is the single biggest give away that this person not only does not know what they are talking about, but they probably also do not know how to trade.

All indicators work provided they are in the right hands!
  • #32
  • Jul 2, 2017 9:03am Jul 2, 2017 9:03am
Quoting dkoleary
Hi all. I am a newbie. First post here.
These have been some great reads written by professional fund managers with a verified track record that provide substance as opposed to feel good BS. Get ready for another degree course and be prepared to invest some effort in your quest. Don't be just another victim:

  1. Trading Systems and Methods + Website (5th edition) Wiley Trading 5th Edition - Perry Kaufman[/color];
  2. The Universal Principles of Successful Trading - Brent Penfold;
  3. Building Winning Algorithmic Trading Systems - Kevin Davey;
  4. A Complete Guide to the Futures market - Jack Schwager;
  5. Systematic Trading - Robert Carver;
  6. Following the Trend - Diversified Managed Futures Trading - Andreas Clenow

  • #33
  • Jul 2, 2017 11:18am Jul 2, 2017 11:18am
Quoting tradability
{quote} LOL @ you....
LOL all you want buddy. I'm just offering my perspectives in terms of keeping things as simple as possible.
  • #34
  • Jul 2, 2017 11:42am Jul 2, 2017 11:42am
Quoting dkoleary
This is going to be something long-term for me so I want a solid and complete understanding of what I am doing, in order for me to develop a system that is based solely on reason and logic, as opposed to just trial and error. Thank you very much.
Hi dkoleary,

First, it's good that you have an understanding of the emotional side of trading and of bankroll issues from online poker as these are the most important things, more important than the precise strategy you trade.

You ask about indicators. I have done a lot of testing of all the standard indicators and they all test out more or less as random over the long haul. They are all pretty much lagging derivatives of price (just look up the mathematics of their calculation) and so you have to ask what they add to the party above and beyond simply studying the basic price action itself.

The only thing I have found that tests out reliably with positive expectancy over the long haul is to trade with the prevailing trend. It's true, the trend is your friend, and it's not rocket science. Almost any strategy traded with the trend gives a success rate over 50% using a simple 1:1 reward:risk ratio. This is enough to do more than OK. If you can do it with a ratio better than 1:1 you will do fantastically.

My best advice for you: focus on swing trading (if that is what you want to do) with the trend and major on discipline, consistency, risk control and money management. You really don't need the fancy indicators.
  • #35
  • Jul 2, 2017 11:47am Jul 2, 2017 11:47am
Contrary to a lot of opinions here, there is nothing wrong with using indicators. Use whatever appeals to you. At the end of the day, you must choose tools that are compatible with your personality. Indicators work and so does price action. Fundamentals also work. You can use any of these tools or all of them. Just experiment and figure out what you like. If you want to learn more about the math behind some indicators and how they work, check out stockcharts.com. Just make sure to be realistic about any approach you choose. There's no holy grail and every method has its pros and cons.
  • #36
  • Jul 3, 2017 2:41am Jul 3, 2017 2:41am
Hi, guys!
I am not sure about the indicators. I saw this thread and decided to join because I always had a little doubt in them. I use only MA, Momentum and MACD when there is a consolidation. I believe that we should not rely heavily on indicators and try and base our trading strategy on the price itself as many of you said earlier on. I don't think that for technical analysis, you should keep an eye only on indicators. I think that they might be of help at some cases but not a main tool. A very successful trader once told me that you are graph needs to be clean and neat not overloaded with different indicators to only loose your focus from the important things like the price itself.
  • #37
  • Jul 3, 2017 5:00am Jul 3, 2017 5:00am
Indicators don't work. Don't waste your time on that.
  • #38
  • Jul 6, 2017 5:16pm Jul 6, 2017 5:16pm
Quoting pooh123
Indicators don't work. Don't waste your time on that.
Well actually they do work. You're assuming that indicators are only used to predict price movement BUT they can be used for other things like spread info, price breach, sending messages etc etc. Not all indicators are used to produce an specific output of the past price movement. It is how each person interprets them.
I read once some scammers speculating that their indicator is over 80% accurate, like the fools they are all indicators are 100% accurate. They are designed to produce a specific output so they will always be 100% accurate, unless you have a crappy coder.
  • #39
  • Jul 6, 2017 9:46pm Jul 6, 2017 9:46pm
Quoting pooh123
Indicators don't work. Don't waste your time on that.
I need be more specific about that. In terms of predicting future price, indicators don't work. At forex-tsd.com, years ago someone offered 100k dollars to anyone who presents an indicator that has above 52% accuracy in predicting future price. To this day, that 100k dollars is still in his pocket.

However, some traders are consistently profitable trading systems involving indicators. That is because : 1) those traders read price action extremely well; 2) those traders know the interaction between price and indicators. Their understanding of indicators is well beyond the "crossing over" or the definitions for the indicators. Actually you cannot find their knowledge of the indicators they use in any book or on-line stuff. They accumulated that knowledge through watching charts for thousands of hours.

An equal number (if not more) of successful traders don't use any indicators. For newbies, I strongly suggest not studying indicators at all, only focusing on watching price action.
  • #40
  • Jul 6, 2017 10:30pm Jul 6, 2017 10:30pm
Quoting pooh123
{quote} I need be more specific about that. In terms of predicting future price, indicators don't work. At forex-tsd.com, years ago someone offered 100k dollars to anyone who presents an indicator that has above 52% accuracy in predicting future price. To this day, that 100k dollars is still in his pocket. However, some traders are consistently profitable trading systems involving indicators. That is because : 1) those traders read price action extremely well; 2) those traders know the interaction between price and indicators. Their understanding...
Good that you explained that blanket statement. Notice that there're plenty of learning resources for 'price action' and almost none about 'indicator action'.

Traders spend lots of time studying price action and/or indicator action. The key question to ask is what do those traders who opt for indicator action know about the market that price action do not vice versa ? Pretty important question to ask as a newbie when one makes the decision which path to take.
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