As you may have deduced, I have a problem with indicators. The simple reason is that they simply lag. They work in some market condition and fail in others. They fail more often than succeed. Indicators follow price, so I was told. We are expected to follow indicators. Why not follow price directly? Instead of focussing on price, we find ourselves focused on indicators built by mathematicians and scientists. I do not need to remind you that forex trading is more of an art than science.
Indicators are programmes that are expected to follow price using some basic algorithm. Since price is king, price can appreciate and depreciate at a rate faster than the indicators can cope with. When this happens, the indicator loses tab of the real situation and cannot record what price has done, so it is backward and what the indicator reflects is an error. With price having this erratic behaviour, time after time, the indicator gets more faulty and therefore, cannot be trusted.
Have you seen some trader's chart? It's all muddled up with indicators that you can hardly see price. Many traders rely so much on indicators than price itself. They look at indicator as a price predictor, I'm sure its not.
Good to see your journal. Look forward to your trades and indeed wisdom!!
Won't clutter this thread up too much, but all the best, and hoping to be a gr8 trader like you!!
good start, hoping to see ur first trade call and follow up with progress.
really this is a very disciplined way to start and convince the world that u know wot u r doing
