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How to properly use indicators

  • #181
  • Dec 1, 2017 2:25pm Dec 1, 2017 2:25pm
Quoting kprsa
{quote} There you go. In my opinion it is best used in combination with "Force" which is basically ATR (i.e. a proxy for market interest/volume): One should always go along the direction which shows an increase of market interest. Cheers, k {file}
hello, does the indicator repaint ?
  • #182
  • Dec 1, 2017 3:03pm Dec 1, 2017 3:03pm
Quoting metta87
{quote} hello, does the indicator repaint ?
No, it does not.
Cheers,
k
  • #183
  • Dec 1, 2017 6:12pm Dec 1, 2017 6:12pm
The proper way to use an indicator begins with making one that shows you what you want to see. Most indicator users are simply bandwagonists of another’s creation and that same most will ponder why most fail.
  • #184
  • Dec 1, 2017 11:22pm Dec 1, 2017 11:22pm
Leading indicators are the indicators, which manage to give you a preliminary signal. Therefore, traders often combine more than one leading indicators in order to eliminate as many fakeouts as possible.
  • #185
  • Dec 4, 2017 5:14am Dec 4, 2017 5:14am
Quoting lento123
Any body know which indicator is the best one for showing candle of bigger TF ? I use M candle indicator that i found here. But some times i see that it will only draw until the close price of last hour on Friday (lets say we put it on M1 and choose H1 as bigger TF). Especially if there is gap between Friday close and Monday open, we can clearly see the candle line is not completely drawn until Monday (the big candle line is only until Friday close).
Sorry for asking this Careless question , without checking the source code first .. It was my Big Fault, the indicator works actually very well ...
  • #186
  • Dec 4, 2017 7:28pm Dec 4, 2017 7:28pm
On a second screen i watch on fast demo servers currencies like "stocks".
Each pair can move during the week +-150 Euro.
For me it's extremely helpful and the fastest way to gauge the bias or to see any good momentum:
Attached Image (click to enlarge)
Click to Enlarge Name: gauge FX.png Size: 78 KB
  • #187
  • Dec 5, 2017 12:56am Dec 5, 2017 12:56am
Quoting The-Flipper
On a second screen i watch on fast demo servers currencies like "stocks". Each pair can move during the week +-150 Euro. For me it's extremely helpful and the fastest way to gauge the bias or to see any good momentum: {image}
I think I don't really understand. Your "Overall Dollar Strength" is just the net profit of your demo trades. Wouldn't it be a better way to just set one (or multiple) reference line(s) and then just calculate the distance to each of these lines?
  • #188
  • Dec 5, 2017 8:58am Dec 5, 2017 8:58am
Quoting AntiCre
{quote} I think I don't really understand. Your "Overall Dollar Strength" is just the net profit of your demo trades. Wouldn't it be a better way to just set one (or multiple) reference line(s) and then just calculate the distance to each of these lines?
That way just gives me a better feel for the money.
Simultaneously i see the same thing as %- changes on another screen as in my profile picture.
  • #189
  • Dec 5, 2017 1:37pm Dec 5, 2017 1:37pm
Quoting The-Flipper
{quote} That way just gives me a better feel for the money. Simultaneously i see the same thing as %- changes on another screen as in my profile picture.
I just realised, is it basically an index ? Like s&p ?
The truth is hidden from you
  • #190
  • Dec 5, 2017 3:49pm Dec 5, 2017 3:49pm
Quoting MaxenshteinD
{quote} I just realised, is it basically an index ? Like s&p ?
Yes. Kind of.
  • #191
  • Dec 7, 2017 11:34pm Dec 7, 2017 11:34pm
Quoting lento123
Any body know which indicator is the best one for showing candle of bigger TF ? I use M candle indicator that i found here. But some times i see that it will only draw until the close price of last hour on Friday (lets say we put it on M1 and choose H1 as bigger TF). Especially if there is gap between Friday close and Monday open, we can clearly see the candle line is not completely drawn until Monday (the big candle line is only until Friday close).
Hi,
Do you mean some thing like image below ? i used the same indicator some time ago, and you can easily change the time2 of the rectangle of the last big candle before market close (friday). Change the value of time2 to monday open time, but do not change price2 value (do not take the monday open price as price2 for this candle), hope this help.

Quoting ataata
Does anybody have experience with using lag and non lag indicators? Like lag or non lag MA, MACD, or....
Hi ataata,
Choosing MA and MACD indicators for trending market are common, but some people do not like them because of their lagging behavior. MACD (lag or Non lag) as we know use at least 2 lines for plotting its result. Value (setting) we choose for each line will give big effect to its result, so if i choose one value having a Half of the other one, is it r ight ? Gracias.
Attached Image (click to enlarge)
Click to Enlarge Name: fridayClose.jpg Size: 70 KB
I am failed,but i found 1,000 ways that won't work ...
  • #192
  • Apr 24, 2018 11:11pm Apr 24, 2018 11:11pm
Quoting kprsa
{quote} I made an oscillator at tradingview ... The best is to catch the wave at the point when the opposite wave in the other direction just becomes weaker... {image} Cheers, k
Hi kprsa,
Could you please explain more how to get benefit of "when the opposite wave in the other direction just becomes weaker" ??
And does it mean, we can apply the same idea to other oscillator like: rsi, Stoch, etc ... may be also the "modified one" like CI / ZZ too ? Thanks
  • #193
  • Apr 25, 2018 3:39am Apr 25, 2018 3:39am
Just to reply to the title of this thread, and I have not read any of the comments, but this may help some people out there as I am a purely observational trader, meaning I trade only what I see. ' How to properly use indicators ' is a bit like asking ' How to properly ride a bicycle ', because although it takes a lot longer to learn how to use them than it does to ride a bicycle, you still have to learn before you can go very far.

For me, indicators, whichever they are, should be selected by a process of trail and error to see which ones you prefer, and then they need to be properly understood, as they will form the basis of any trade that we make. Then, whether you use a single time frame on a laptop, or several by way of multiple screens, each trading decision has to have a very solid rationale behind it, a signal that you know, from your knowledge of your trading strategy and from previous results, will give you a winning trade more often than it does not. This can be a moving average crossover, a broken trend line or whatever, but there has to be a rock solid foundation for taking the trade. If you do not have this recognition which informs you when to take a trade and when not to, a high % of losses will occur. If you do have it, using good money management and risk/reward ratio, and always taking the opportunities as they occur, then any trader will come out ahead.

Where most traders fail, is that they do not have these clearly defined trading signals, placing trades more out of hope than anything else. If we do not have a clearly recognizable reason for taking any trade, we should not take it.
  • #194
  • Apr 25, 2018 3:50am Apr 25, 2018 3:50am
The only indicator I would advise to use is the EMA20, your brain has already all the necessary equipment for you to be the richest person on the block by trading what you see.
  • #195
  • Apr 26, 2018 2:55am Apr 26, 2018 2:55am
Quoting newhope
{quote} Hi kprsa, Could you please explain more how to get benefit of "when the opposite wave in the other direction just becomes weaker" ?? And does it mean, we can apply the same idea to other oscillator like: rsi, Stoch, etc ... may be also the "modified one" like CI / ZZ too ? Thanks
The whole story is just to measure the strength of pushes in one and the other direction and to ensure that one is usually on the correct/stronger side of the market. One can do it in a a variety of ways, for example by zigzag, or by an unbounded oscillator, like in my example. Normally, the oscillators are not plotted as in my example (just their absolute value), so I found it useful to make this modification. Then one just follows the waves of the oscillator. You stay with your buys as long as the positive waves are higher than the negative ones; consider selling when the negative waves become stronger.
That is all there is to it.
Cheers,
k
  • #196
  • Apr 26, 2018 3:04am Apr 26, 2018 3:04am
Darko2010,

Is this EMA20 applied to the high, low or close value?

kprsa,

Can you share you modified indicator?

Thank you
  • #197
  • Apr 26, 2018 3:30am Apr 26, 2018 3:30am
Quoting Rafaz1
kprsa, Can you share you modified indicator? Thank you
Here it is.
Cheers,
k
  • #198
  • Edited 5:52am Jun 12, 2019 5:31am | Edited 5:52am
Quoting kprsa
Interesting thread. I would make one (sorry if it is too obvious!) point about the price chart itself. For visibility of this, it is good to use the line chart with added SMA(period=1, price=high), and SMA(period=1, price=low). Your moving averages then just mark High and Low of any particular candle. 1. Price moves in a uptrend typically such that its Close is near the High. 2. Price moves in a downtrend typically such that its Close is near the Low. 3. If it is the opposite, this means selling during an up move or buying during the down move....
Hi kprsa,
Can we do this every dey or we can do it at any time, depend on the pair /chart we looking at that time ?
  • #199
  • Jun 12, 2019 6:17am Jun 12, 2019 6:17am
Quoting newhope
{quote} Hi kprsa, Can we do this every dey or we can do it at any time, depend on the pair /chart we looking at that time ?
In principle this is true at any tf. However, the lower tfs are somewhat chaotic. I used this for manual trading on oil at 30min and 1h charts, when there is most volatility (normaly the overlap of London and NY sessions).
Cheers,
k
  • #200
  • Feb 19, 2020 11:41am Feb 19, 2020 11:41am
I do not think that this question can be answered with one sentence or with some universal instruction that everyone can use. This is because each indicator has its own peculiarities, starting from the external design, ending with the peculiarities of settings, which a trader chooses for himself depending on his strategy or market situation. Therefore, in this case, I would recommend you to identify those indicators that you will definitely need and carefully study them so that you can apply them in practice. Now you can find great articles or video tutorials that will help you to quickly navigate and immediately understand what you will and will not use in practice.
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