Reliable Technical Indicator...??? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

How good/reliable are Forex eBooks? 23 replies

Reliable range bar indicator/EA 1 reply

Best Reliable Sources for Daily Support and Resistance points. 2 replies

What is the most reliable and profitable technical tool? 37 replies

Most reliable mini platform 10 replies

Attachments: Reliable Technical Indicator...???
Exit Attachments

Reliable Technical Indicator...???

  • #1
  • First Post: Edited Jun 29, 2008 3:09am Mar 29, 2008 3:53pm | Edited Jun 29, 2008 3:09am
What You Think ...? Which Indicator is best for you and Reliable for your Trading & Why....???
I Dont Use Indicator's Much As I Use TrendLine's, Fib's, S/R & F.Fan's But I Really Like Stochastic Also... I found this Indicator as The Most Reliable Indicator for Me ...
Moving Averages Are Also Good...
  • #2
  • Mar 29, 2008 3:57pm Mar 29, 2008 3:57pm
Quoting Umairs2004
What You Think ...? Which Indicator is best for you and Reliable for your Trading & Why....???
I Dont Use Indicator's Much As I Use TrendLine's, Fib's, S/R & F.Fan's But I Really Like Stochastic Also... I found this Indicator as The Most Reliable Indicator for Me ...
Moving Averages Are Also Good... ...

Same here. If you are going to use anything then use support and resistance lines (including psychological). Fib's work well especially on the larger time frames. Stochastics are fine if you adjust the settings to your needs... this requires some back testing.
  • #3
  • Mar 30, 2008 12:30am Mar 30, 2008 12:30am
I really like stochastics but only when viewed over several timeframes. If I am watching the 15 min charts, then I have 15,30 and 60 min stochastics and look for all three to line up.

I am also a big fan of weekly, monthly and yearly pivots. Great points of support and resistance.
  • #4
  • Mar 30, 2008 1:00am Mar 30, 2008 1:00am
all technical indicators will fail eventually. The trick is to use a few of them to filter out each other. in this way you will be out of trade when one of the indicators fail. so the trade that you took will have a high success rate.

Its like quality control over these indicators. come up with a plan/strategy to do QC on these indicator. Once all of them agree only then you trade.

One more thing, there is more than one way how to read each indicators. Trust me, so far I only use MA, RSI and Stochastic. I found 2 ways to read RSI and stochastic. The result is fantastic. MA act as dynamic support resistance line.
{Promotion Removed}
  • #5
  • Mar 30, 2008 1:19am Mar 30, 2008 1:19am
Quoting greengo
all technical indicators will fail eventually. The trick is to use a few of them to filter out each other. in this way you will be out of trade when one of the indicators fail. so the trade that you took will have a high success rate.

Its like quality control over these indicators. come up with a plan/strategy to do QC on these indicator. Once all of them agree only then you trade.

One more thing, there is more than one way how to read each indicators. Trust me, so far I only use MA, RSI and Stochastic. I found 2 ways to read RSI and stochastic. The result is fantastic. MA act as dynamic support resistance line.
I Think Combination of indicators To give an entry signal at the same time is bit reliable......
  • #6
  • Mar 30, 2008 1:28am Mar 30, 2008 1:28am
But Indicators also fails if you Mistakenly Enter in the announcement of Important Data's...
Im Trading through breakout method and Found it excellent for me and my trading ...That's why i dont use Indicators much but found Ssto a good tool In my trading......
  • #7
  • Mar 30, 2008 1:52am Mar 30, 2008 1:52am
Quoting Umairs2004
But Indicators also fails if you Mistakenly Enter in the announcement of Important Data's...
Im Trading through breakout method and Found it excellent for me and my trading ...That's why i dont use Indicators much but found Ssto a good tool In my trading......
Hi Umair, i have seen your trading style in many threads, and i notice that it is very similar to mine, i also use trend lines and PPz's, i have a few ema's on my charts too, and if you ask me, i never really felt like using any indicators other than these, Stochastics are good, some ppl really like the RSI too, but what's important for me is the fact that i can trade without any of these on my chart, and when this can be done i don't feel the need to accomodate them, their purpose is demolished, and if i still insist with them they will only interfere with my trading system.

most ppl will often staright away throw a negitive statment against inidicators, ignoring and over looking the fact that many successful systems are based on such indicators. they work very well if your system can accomodate them otherwise they are really are a distraction.

but if you still ask me i like the volumes indicator, which illustrates how much of trading is taking place at a certain time. with my trading system which deals with patterns breakouts, trendlines, ppz's and price action, it really does work. Umair you would know that often breakouts have a lot to do with the how much of volumes are being traded. besides i also use this indicator at times to confirm Price actions, a doji during solid trading is a great sign of indescion, but a doji during low volatility is'nt all that important...hope you get my point...

a present exampl of Gu on the 1H chart:

http://i81.photobucket.com/albums/j2...us/lskgh-1.gif

the falling volume confirms the fact that falling wedge pattern is underway, the entry is taken only when a sudden increase in volumes is collaborated with a nice breakout from the two converging trendlines making up the pattern...

so this indicator works well for me, and should work for you too Umair.

happy trading...

Regards,
Ghous
I believe . . .
  • #8
  • Mar 30, 2008 2:17am Mar 30, 2008 2:17am
Quoting ghous
i like the volumes indicator, which illustrates how much of trading is taking place at a certain time.
It's not volume you're seeing, it's tick changes per period. Quite different. The broker/MT4 are misrepresenting it by calling it "volume".
  • #9
  • Mar 30, 2008 2:33am Mar 30, 2008 2:33am
Quoting greengo
I found 2 ways to read RSI and stochastic. The result is fantastic.
hi greengo...if u dont mind, can u share the both way how u read rsi & srochastic.

thnx in advance
  • #10
  • Mar 30, 2008 3:00am Mar 30, 2008 3:00am
Quoting Trader KGB
It's not volume you're seeing, it's tick changes per period. Quite different. The broker/MT4 are misrepresenting it by calling it "volume".
i hardly see any difference in the original volume indication provided by the mt4 and this indicator...

http://i81.photobucket.com/albums/j2...us/lskgh-2.gif

I believe . . .
  • #11
  • Mar 30, 2008 3:00am Mar 30, 2008 3:00am
now that i have found my best strategy
i can use any indicator and still still be able to trade with high winning prob

i have tried basic MACD, S/R, Fibo, EMA cross. among those, S/R was the fastest

they are all work with my strategy and i currently use MACD since i had the MACD cross indi which will show arrows on my chart and that will make my day easier.

and more promising fact was when i tried on my stocks chart, they also work!!! a good strategy should be universal not exclusive

so the basic principle is about finding good interpretation of those indicators

if one use indicators to predict market movement you are making the biggest mistake, a series of losses during sideway market will definitely wipe out your account. you may make well during trending moment and make you extremely confident, but wait until the monster coming out and eat your account. that monster name btw is "ranging"

indicators are just visual aid based on MA, they will help people understanding the charts in a much simpler way. don't overestimated them.
  • #12
  • Mar 30, 2008 3:14am Mar 30, 2008 3:14am
Quoting ghous
Hi Umair, i have seen your trading style in many threads, and i notice that it is very similar to mine, i also use trend lines and PPz's, i have a few ema's on my charts too, and if you ask me, i never really felt like using any indicators other than these, Stochastics are good, some ppl really like the RSI too, but what's important for me is the fact that i can trade without any of these on my chart, and when this can be done i don't feel the need to accomodate them, their purpose is demolished, and if i still insist with them they will only interfere with my trading system.

most ppl will often staright away throw a negitive statment against inidicators, ignoring and over looking the fact that many successful systems are based on such indicators. they work very well if your system can accomodate them otherwise they are really are a distraction.

but if you still ask me i like the volumes indicator, which illustrates how much of trading is taking place at a certain time. with my trading system which deals with patterns breakouts, trendlines, ppz's and price action, it really does work. Umair you would know that often breakouts have a lot to do with the how much of volumes are being traded. besides i also use this indicator at times to confirm Price actions, a doji during solid trading is a great sign of indescion, but a doji during low volatility is'nt all that important...hope you get my point...

a present exampl of Gu on the 1H chart:

http://i81.photobucket.com/albums/j2...us/lskgh-1.gif

the falling volume confirms the fact that falling wedge pattern is underway, the entry is taken only when a sudden increase in volumes is collaborated with a nice breakout from the two converging trendlines making up the pattern...

so this indicator works well for me, and should work for you too Umair.

happy trading...

Regards,
Ghous
Hello Ghous...
Well I Can not ignore the indicator's Importance specially Ssto. This the only indicator which seems most reliable for me and my trading... Well i really like this indicator and its the important part of my system...
Nice to Know that volume Indicator is working very well for you... Seems this indicator suits well with your breakout strategy. I,ll Try It Also...
Happy Trading to you 2My Friend...
  • #13
  • Mar 30, 2008 10:56am Mar 30, 2008 10:56am
Quoting ghous
i hardly see any difference in the original volume indication provided by the mt4 and this indicator...
If it leads to profitable trades, by all means use it!

I'm just saying that it's not volume in the traditional sense like stocks & futures. There is no published volume in forex, it's merely tick changes per period.
  • #14
  • Mar 30, 2008 1:31pm Mar 30, 2008 1:31pm
Hi all,
I'd just like to thank you all for this thread.

You have restored my confidence in indicators.

I have been trading for 7 years and have always used the MACD and latterly the RSI.

Then I started reading FF and everyone seemed to be saying that you should trade naked with no indicators or even MA's.

This has restored my confidence in indicators and I guess at the end of the day its about what works for the individual and the MACD and RSI work for me lol.

Keep it up

Regards
Stew
  • #15
  • Mar 30, 2008 3:49pm Mar 30, 2008 3:49pm
All indicators are good but many times they fail because of a larger wave in a higher timeframe.
All the indicators are better when the signal is triggered at the same time in 2 or 3 timeframes. Then ... all indicators can be good.
  • #16
  • Mar 30, 2008 11:34pm Mar 30, 2008 11:34pm
Quoting stewrigh
Hi all,
I'd just like to thank you all for this thread.

You have restored my confidence in indicators.

I have been trading for 7 years and have always used the MACD and latterly the RSI.

Then I started reading FF and everyone seemed to be saying that you should trade naked with no indicators or even MA's.

This has restored my confidence in indicators and I guess at the end of the day its about what works for the individual and the MACD and RSI work for me lol.

Keep it up

Regards
Stew
CONFIDENCE that's the most important thing

both way actually works, like this morning i traded naked, on friday i used MACD

it depends on the situation, if i were not confident entering the market I'd better wait for indicators to signal me in, if the chart is convincing I will go in since the charts (using candle patterns, S/R, fibo) are usually faster than indis

another good advantage of indicators is they are much easier to understand

I'm about to open a trading school and of course indicators would be my main subject since I could teach even a 12 yrs old to trade with a great success using single indicator

happy pipping
  • #17
  • Mar 31, 2008 2:19am Mar 31, 2008 2:19am
Quoting emda
All indicators are good but many times they fail because of a larger wave in a higher timeframe.
All the indicators are better when the signal is triggered at the same time in 2 or 3 timeframes. Then ... all indicators can be good.
Agreed... But I Think Signals from combination of different indicators are of very good Impact and Reliable........
  • #18
  • Mar 31, 2008 4:15am Mar 31, 2008 4:15am
A reliable indicator he says. That's funny.
How you act is more important than how you feel.
  • #19
  • Mar 31, 2008 4:17am Mar 31, 2008 4:17am
Quoting Warmagus
A reliable indicator he says. That's funny.
Whts So funny in it...???
  • #20
  • Mar 31, 2008 4:25am Mar 31, 2008 4:25am
Quoting Gift_Art
CONFIDENCE that's the most important thing

both way actually works, like this morning i traded naked, on friday i used MACD

it depends on the situation, if i were not confident entering the market I'd better wait for indicators to signal me in, if the chart is convincing I will go in since the charts (using candle patterns, S/R, fibo) are usually faster than indis

another good advantage of indicators is they are much easier to understand

I'm about to open a trading school and of course indicators would be my main subject since I could teach even a 12 yrs old to trade with a great success using single indicator

happy pipping
I really Like candlestick pattren and it's trading... Very Profitable if u have a very good knowledge about this pattren...
Well Goodluck to your Trading School...
0 traders viewing now