Which is the BEST indicator and why | Forex Factory

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Which is the BEST indicator and why

  • #1
  • First Post: Feb 15, 2020 10:17am Feb 15, 2020 10:17am
I have used many indicators. All the ones on MT4 and more but have never really found one I could trust for more than a bar or two.
Some think Keltner Channel indicators are the new thing or is it deep learning networks ?
Let's see what members think and why. It should be interesting.
  • #2
  • Feb 16, 2020 8:40am Feb 16, 2020 8:40am
I don't really believe in such a thing as there being an indicator that is the best for everyone universally. Different indicators are most useful for different strategies that are most useful to different people. So it is all very subjective.
  • #3
  • Feb 17, 2020 4:32am Feb 17, 2020 4:32am
I have been using a combination of 3 indicators - envelope, stochastics and MACD with some success.But only providing about 65% accuracy which isn't enough really. So still looking for something better.
  • #4
  • Feb 17, 2020 10:49pm Feb 17, 2020 10:49pm
Try adding the Fib indicator with the 50% fib retrace.
Congratulations ScalaFX for coming out of the closet!
  • #5
  • Feb 18, 2020 12:30am Feb 18, 2020 12:30am
Quoting Pat494
I have been using a combination of 3 indicators - envelope, stochastics and MACD with some success.But only providing about 65% accuracy which isn't enough really. So still looking for something better.
65% accuracy would make you one of the greatest traders of all time. If you can't profit hugely from even a small edge, your problem lies elsewhere.

As for your indicators - suppose you watch tomorrow's weather forecast on your TV. Then you listen to the weather forecast on your radio, read the forecast in the local newspaper, and read the forecast online. You aren't actually getting four different weather forecasts - unless your local rag has its own weather satellite system, you are almost certainly getting one forecast fed to you through four different media.

So it is with technical indicators. They are all derived from the same data source - the price chart on your screen. If you are looking at a price chart, Stochastics, MACD and RSI, you are not looking at four different pieces of information - you are looking at the same set of data fed to you four different ways. Trying to find an edge by rearranging the same data in different ways is a fool's game.

If you want to find genuinely useful indicators, try to find ones which are derived from some other source of information that isn't already represented on your screen. COT is a good place to start, or fundamental indicators that central banks are watching, or intermarket correlations such as stocks, bonds or gold.
si hoc legere scis nimium eruditionis habes
  • #6
  • Feb 18, 2020 3:07am Feb 18, 2020 3:07am
Quoting numbnuts
{quote} 65% accuracy would make you one of the greatest traders of all time. If you can't profit hugely from even a small edge, your problem lies elsewhere. As for your indicators - suppose you watch tomorrow's weather forecast on your TV. Then you listen to the weather forecast on your radio, read the forecast in the local newspaper, and read the forecast online. You aren't actually getting four different weather forecasts - unless your local rag has its own weather satellite system, you are almost certainly getting one forecast fed to you through...
Nah. You just haven't found the right Gann Angle to apply to the weather forecasts.
Congratulations ScalaFX for coming out of the closet!
  • #7
  • Feb 18, 2020 8:02am Feb 18, 2020 8:02am
The best indicator its the price in itself..

PURE PRICE..

A chart made of PURE PRICE and nothing else (no time in the middle)..

The Open/High/Low/Close of the price on a single bar made of PURE PRICE..


There is NOTHING more clear than that ONCE you learn how to read it, and "indicators" are practically redundat/useless at that point..
  • #8
  • Feb 18, 2020 8:07am Feb 18, 2020 8:07am
Quoting havo
The best indicator its the price in itself.. PURE PRICE.. A chart made of PURE PRICE and nothing else (no time in the middle).. The Open/High/Low/Close of the price on a single bar made of PURE PRICE.. There is NOTHING more clear than that ONCE you learn how to read it, and "indicators" are practically redundat/useless at that point..

Havo,

Can you give us more insight. Because I am trying to read OHLC for the Renko Charts and I am failing miserably
  • #9
  • Feb 18, 2020 7:20pm Feb 18, 2020 7:20pm
Quoting SheepLovesFi
{quote} Havo, Can you give us more insight. Because I am trying to read OHLC for the Renko Charts and I am failing miserably
No offense but if this is happening then you should reconsider your actual knowledge about OHLC and chart readings.. mainly question yourself about the source you used to learn because RENKO its VERY simple to understand, just a couple concepts are "backwards" from regular charts but almost everything else can carry on

Reading OHLC and a few more fundamentals of trading (but REAL knowledge, not the copy/pasted crap that its found everywhere) and you can trading ANYTHING, ANY INSTRUMENT OR WHATEVER YOU WANT, anytime/anywhere/anyplace with absolute accuracy every single time..

Trading IS simple (dont confuse simple with "easy" it still an activity that requires practice until is second nature) BUT internet make it as complicated as humanly possible. THATS where the problems start lol
  • #10
  • Feb 18, 2020 7:54pm Feb 18, 2020 7:54pm
Quoting havo
{quote} No offense but if this is happening then you should reconsider your actual knowledge about OHLC and chart readings.. mainly question yourself about the source you used to learn because RENKO its VERY simple to understand, just a couple concepts are "backwards" from regular charts but almost everything else can carry on Reading OHLC and a few more fundamentals of trading (but REAL knowledge, not the copy/pasted crap that its found everywhere) and you can trading ANYTHING, ANY INSTRUMENT OR WHATEVER YOU WANT, anytime/anywhere/anyplace with...
Ok, so where should i start ?? Where should i get that trading knowledge ?? Any thread or topic you can point me to ?
  • #11
  • Feb 28, 2020 9:44am Feb 28, 2020 9:44am
"The best indicator I have is between my ears." — strat
Learn from your mistakes and march on.
  • #12
  • Feb 29, 2020 3:35am Feb 29, 2020 3:35am
Quoting Pat494
I have used many indicators. All the ones on MT4 and more but have never really found one I could trust for more than a bar or two. Some think Keltner Channel indicators are the new thing or is it deep learning networks ? Let's see what members think and why. It should be interesting.
My chart reading skill; but to be honest I am not comfortable with any 3rd party trading software! Manual trading is my main priority!
  • #13
  • Aug 10, 2020 1:07pm Aug 10, 2020 1:07pm
I think all indicators are best. I am a breakout trader. I prefer Ichimoku Kinko Hyo indicator. It serves my trading purpose very well.
  • #14
  • Aug 11, 2020 1:06am Aug 11, 2020 1:06am
Quoting Pat494
I have used many indicators. All the ones on MT4 and more but have never really found one I could trust for more than a bar or two. Some think Keltner Channel indicators are the new thing or is it deep learning networks ? Let's see what members think and why. It should be interesting.
There is nothing like specific best indicator. It's what a trader understand the most. To understand an indicator you need to know why it uses specific period, shift, deviation etc. So you need to understand the parameters of an indicator to learn how an indicator works. And I have seen traders who don't use any indicator but making money. It's the understanding price and the market.
  • #15
  • Aug 11, 2020 5:23am Aug 11, 2020 5:23am
Price is #1. Other than that, I think daily pivots are the more important indicator as they are leading. MACD is also very popular. Nothing beats support/resistance levels.
  • #16
  • Aug 15, 2020 9:52am Aug 15, 2020 9:52am
I agree, I think the most important indicator is price because all other indicators are just mathematical representations of it.
  • #17
  • Last Post: Sep 3, 2020 1:18am Sep 3, 2020 1:18am
For me, ichimoku kinko hyo is the best indicator for breakout trading. Moreover, it can also be used with other trading strategy. The indicator provide support and resistance level, trader don’t have to bother to identify those level.
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