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What Is the Best Indicator?

  • #1
  • First Post: Edited Jan 26, 2008 4:29pm Jan 25, 2008 8:28pm | Edited Jan 26, 2008 4:29pm
Hi Everybody ,

This is the question that I have been asked so many times.

What is the best indicator?

Well! if you ask me I have to say that the best indicator is the indicator which is on time. All the indicators that we have are delayed. Their formula uses the information of the happened events and gives some information that we have to use for the future. It doesn't make sense, does it?

It is like you say tomorrow it will rain because it has been raining since three days ago! This is not logical. That's why indicators make a lot of false signals and a lot of beginners lose all the money they have in their accounts just because of following the indicators signals.

There is only one indicator which is not delayed: Candlestick!

Candlesticks are the only real time indicators we have. The signals they give are the most accurate signals.

You just need to spend some time and learn the language of the candlesticks. If you do that you will see that they really talk to you:

> Bulls are getting stronger ...

> Bears are trying so hard to take the control but have not been successful so far...

> Bears failed to take the control and so the price will keep on going up by now.

> The market is in an indecision status because both Bears and Bulls are as strong as each other. Wait...

Yes! they really talk to you and you can not hear these news from any other indicator.
  • #2
  • Jan 25, 2008 8:42pm Jan 25, 2008 8:42pm
candle stick is the same as a bar? just a thicker version, not so?
if it is so, then price action is the only real time indicator, a candlestick or bar is just the means of measuring the price action, much like a line for a moving average or RSI.
best regards!
  • #3
  • Jan 25, 2008 8:45pm Jan 25, 2008 8:45pm
Price is the best indicator.
  • #4
  • Jan 25, 2008 8:57pm Jan 25, 2008 8:57pm
Quoting AmeriTrini
candle stick is the same as a bar? just a thicker version, not so?
if it is so, then price action is the only real time indicator, a candlestick or bar is just the means of measuring the price action, much like a line for a moving average or RSI.
best regards!
Hi,

It is not the same as bar but so similar. Like the bar, each candlestick shows four different prices: open, close, high and low

But there are a lot of discussions and rules about the shape of the candlesticks that make it different.

Yes, candlesticks are formed by the price movement but they are really different from RSI and other indicators.

Price is the first indicator. That's right but something that translates the price movement to a language that we can understand is better. A line chart can never give you the signals that the candlesticks give.
  • #5
  • Jan 25, 2008 9:02pm Jan 25, 2008 9:02pm
Quoting Vahid
Hi,

It is not the same as bar but so similar. Like the bar, each candlestick shows four different prices: open, close, high and low

But there are a lot of discussions and rules about the shape of the candlesticks that make it different.

Yes, candlesticks are formed by the price movement but they are really different from RSI and other indicators.

Price is the first indicator. That's right but something that translates the price movement to a language that we can understand is better. A line chart can never give you the signals that the candlesticks give.

I didnt say that the price action is LIKE the RSI, you misread. I said the bar/candle that is used to measure the price action, can be compared to a line which is used to measure the RSI. The bar/candle is just a tool for measuring this price action and is not the actual indicator. Sorry for any confusion.

p.s.- candlesticks are not formed by price movement, but vice versa, the price movement, or if you prefer, the movement of price is formed by the candlesticks. On a graph.

best regards.
  • #6
  • Jan 25, 2008 10:15pm Jan 25, 2008 10:15pm
Quoting AmeriTrini
candle stick is the same as a bar? just a thicker version, not so?
if it is so, then price action is the only real time indicator, a candlestick or bar is just the means of measuring the price action, much like a line for a moving average or RSI.
best regards!
I personally feel the bar chart shows me price action better then candles. I can identify consistancy by how loose or tight price looks through bars.. Just me though nothing wrong with candles as I think it shows more of the bear/bull emotions...
Check Mate GAME OVER
  • #7
  • Jan 25, 2008 10:33pm Jan 25, 2008 10:33pm
Quoting AmeriTrini
p.s.- candlesticks are not formed by price movement, but vice versa,
Is this some kind of closely held 1KT secret? Or a joke? Or am I just too thick to comprehend what you're saying? Candlesticks (and bars) are graphic representations of price action displayed on a chart. As price fluctuates, the configuration of the candle/bar changes, not the other way around. Price increases, candle/bar moves upward; price decreases, candle/bar moves downward.

This is one of the basic tenets of technical market analysis that I thought I understood reasonably well. Maybe not.
Quoting AmeriTrini
the price movement, or if you prefer, the movement of price is formed by the candlesticks. On a graph.

best regards.
And all this time I was under the impression price movement was formed by the market!
  • #8
  • Jan 25, 2008 10:42pm Jan 25, 2008 10:42pm
Quoting AmeriTrini
I didnt say that the price action is LIKE the RSI, you misread. I said the bar/candle that is used to measure the price action, can be compared to a line which is used to measure the RSI. The bar/candle is just a tool for measuring this price action and is not the actual indicator. Sorry for any confusion.

p.s.- candlesticks are not formed by price movement, but vice versa, the price movement, or if you prefer, the movement of price is formed by the candlesticks. On a graph.

best regards.
Yes; traders don't know the candlesticks as indicator. This is the name I use for them. For me they are the best indicators of the price situation and they give a lot of information about the next movements that other indicators can not give.
  • #9
  • Jan 25, 2008 10:54pm Jan 25, 2008 10:54pm
The best indicator is the one that makes you money, I don't see what other criteria need apply. There is no objective 'best'.
The breaking of a wave cannot explain the whole sea.
  • #10
  • Jan 25, 2008 11:03pm Jan 25, 2008 11:03pm
Quoting Trillionaire
Price is the best indicator.
well said
  • #11
  • Jan 25, 2008 11:21pm Jan 25, 2008 11:21pm
i think news quite good....
but since the whole world may see it, ... well ... fundamental anyway,
rumor works sometimes...
  • #12
  • Jan 25, 2008 11:25pm Jan 25, 2008 11:25pm
If your making money, that would be the best indicator.



Ken
  • #13
  • Jan 26, 2008 12:20am Jan 26, 2008 12:20am
support, resistance lines, fibo retracements.

dont know wth this keep working over and over again.
its like if currency movements were just controlled by traders, banks, financial institutions and not by regular people.
  • #14
  • Jan 26, 2008 12:32am Jan 26, 2008 12:32am
Quoting Vahid
Yes; traders don't know the candlesticks as indicator. This is the name I use for them. For me they are the best indicators of the price situation and they give a lot of information about the next movements that other indicators can not give.
Actually, Candlesticks eliminate a lot of information. They are a filter. They only show OHLC for a given period of time. They show very little about price movement between the open and close.

As for what they tell you about price situation and future movements, that depends upon your own understanding, interpretation, and bias.
  • #15
  • Jan 26, 2008 12:44am Jan 26, 2008 12:44am
Quoting AmeriTrini
I didnt say that the price action is LIKE the RSI, you misread. I said the bar/candle that is used to measure the price action, can be compared to a line which is used to measure the RSI. The bar/candle is just a tool for measuring this price action and is not the actual indicator. Sorry for any confusion.
Let's begin with this; candlestick display the open, high, low and closing values for each time period you want to display. The relationship between the open and close is considered vital information and forms the essence of candlesticks. Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled candlesticks, where the close is less than the open, indicate selling pressure.

The advantage of candlesticks is the ability to highlight trend weakness and reversal signals. So is indicating something, or not?
Candlestick don't involve any calculation but for sure is an indicator of supply and demand at any period of time that you could use to make a desicion when combine them with candlestick patterns.



Quoting AmeriTrini
p.s.- candlesticks are not formed by price movement, but vice versa, the price movement, or if you prefer, the movement of price is formed by the candlesticks. On a graph.

best regards.
It is the other way arround, Candlesticks are formed by price movement then you see them on the charts. Of course when you see a candle forming, that is the accion of the buying and selling at that moment.
  • #16
  • Jan 26, 2008 12:58am Jan 26, 2008 12:58am
Quoting opie999
Is this some kind of closely held 1KT secret? Or a joke? Or am I just too thick to comprehend what you're saying? Candlesticks (and bars) are graphic representations of price action displayed on a chart. As price fluctuates, the configuration of the candle/bar changes, not the other way around. Price increases, candle/bar moves upward; price decreases, candle/bar moves downward.

This is one of the basic tenets of technical market analysis that I thought I understood reasonably well. Maybe not.
And all this time I was under the impression price movement was formed by the market!

you said it, you are too thick to comprehend what Im saying. When was the last time you opened a chart and saw 1 candle? graphs show a bunch of candles which show the price action of a currency.
  • #17
  • Jan 26, 2008 1:00am Jan 26, 2008 1:00am
Quoting Trillionaire
Actually, Candlesticks eliminate a lot of information. They are a filter. They only show OHLC for a given period of time. They show very little about price movement between the open and close.

As for what they tell you about price situation and future movements, that depends upon your own understanding, interpretation, and bias.

Filter?....Candlesticks or bars are nothing more than a pictoral representation of the range that price moved within during a given time frame.

You could step down a TF or 2 and see a lot of what is happening between that open & close for the TF you are looking at.

Not sure what your point is here?
  • #18
  • Jan 26, 2008 1:08am Jan 26, 2008 1:08am
Quoting Carrera
Let's begin with this; candlestick display the open, high, low and closing values for each time period you want to display. The relationship between the open and close is considered vital information and forms the essence of candlesticks. Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled candlesticks, where the close is less than the open, indicate selling pressure.

The advantage of candlesticks is the ability to highlight trend weakness and reversal signals. So is indicating something, or not?
Candlestick don't involve any calculation but for sure is an indicator of supply and demand at any period of time that you could use to make a desicion when combine them with candlestick patterns.





It is the other way arround, Candlesticks are formed by price movement then you see them on the charts. Of course when you see a candle forming, that is the accion of the buying and selling at that moment.
you didnt understand what I am saying and the reason why you didnt understand is in your signature!
  • #19
  • Jan 26, 2008 1:54am Jan 26, 2008 1:54am
Quoting AmeriTrini
you didnt understand what I am saying and the reason why you didnt understand is in your signature!
My signature said "any mistake". This mean when writing, is NOT for the understanding of the language.

I wasn't the only one that didn't understand you as you can see on other post before mine.

Don't take it personal, I don't know who are you, I'm just explaining something that you could be wrong and in this market we are learning every day. There is nothin wrong when we make mistakes, what is wrong is if you don't learn nothing from the mistakes.

Good trading, I know you love this market.
  • #20
  • Jan 26, 2008 2:09am Jan 26, 2008 2:09am
Quoting Carrera
My signature said "any mistake". This mean when writing, is NOT for the understanding of the language.

I wasn't the only one that didn't understand you as you can see on other post before mine.

Don't take it personal, I don't know who are you, I'm just explaining something that you could be wrong and in this market we are learning every day. There is nothin wrong when we make mistakes, what is wrong is if you don't learn nothing from the mistakes.

Good trading, I know you love this market.

so is it 'any' mistake or 'certain' mistake?...... ..........yes i do love this market, i believe that this is all you need to make a very good living! i am one day closer to that day!............ hope you too, if not already there!
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