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Why Indicators will fail you

  • #201
  • Sep 25, 2008 10:50pm Sep 25, 2008 10:50pm
Quoting tunera
Indicators are like a traffic lights, they are helpful to avoid car accidents, but everytime you see a green traffic lights, it doesn't mean you must cross the crossroad without looking left and right roads, that's the error many people do.
Good analogy or should i say metaphor?!
  • #202
  • Sep 25, 2008 11:08pm Sep 25, 2008 11:08pm
Indicators will not fail you.
If you think an indicator has failed you, it will be because you failed to understand the nature and limitations of the indicator(s). If you fail, it is you who have failed not the indicator.
  • #203
  • Sep 26, 2008 12:38am Sep 26, 2008 12:38am
Quoting KudzuFX
Indicators will not fail you.
If you think an indicator has failed you, it will be because you failed to understand the nature and limitations of the indicator(s). If you fail, it is you who have failed not the indicator.
Another good response.

As someone once said, it is ok to have losing trades but when you start to look to blame something or someone else, you have really lost.
  • #204
  • Sep 27, 2008 12:49am Sep 27, 2008 12:49am
Quoting denbur
esignal collects volume from such banks as Deutche Bank, HSBC, Merryl Lynch, Bank of America

it also has Level 2 or Depth level, like US Stock market has. this allows you to see who are the buyer and seller and how much of them on each level in any pair.
Both of these statements are factually incorrect.

GTIS feed does not track volume traded, that is not possible.

The L2/DOM feed does not actually show who is buying and selling, nor does it show what amount is being bought or sold. It merely shows which bank is bidding/offering and at what price. Two entirely different concepts.
  • #205
  • Sep 27, 2008 1:38am Sep 27, 2008 1:38am
Quoting Trader KGB
Both of these statements are factually incorrect.

GTIS feed does not track volume traded, that is not possible.

The L2/DOM feed does not actually show who is buying and selling, nor does it show what amount is being bought or sold. It merely shows which bank is bidding/offering and at what price. Two entirely different concepts.
1. i never said that tick volume is traded volume.

2. re-read what you said and what i said. I did not say that it shows how many they are selling or buying. i said how many participants on each level, it only gives you idea how thick is each level. that is two different things.

3. i don't sell esignal so i don't care what you think about it.
  • #206
  • Sep 27, 2008 1:48am Sep 27, 2008 1:48am
Quoting denbur
1. i never said that tick volume is traded volume.
Your words: "esignal collects volume"

No they don't.

Quote
2. re-read what you said and what i said. I did not say that it shows how many they are selling or buying. i said how many participants on each level. that is two different things.
Your words: "this allows you to see who are the buyer and seller"

No it doesn't.

Quote
3. i don't sell esignal
I never said you did... just get your facts straight.
  • #207
  • Sep 27, 2008 1:58am Sep 27, 2008 1:58am
Quoting Trader KGB
Your words: "esignal collects volume"

No they don't.

Your words: "this allows you to see who are the buyer and seller"

No it doesn't.

I never said you did... just get your facts straight.

i dont think that argument here really matters. If you are looking for a reason to find someones mistake and start an argument you found the wrong place.

1. esignal collects tick volume.
2. you can see who is selling/buying on each level. you can see names of the participants. you can see how many of them on each level.
3. since i am not selling esignal there is no point in starting the argument.

ps
its up to you how to use this info. dont start an argument just because you dont know how. every one here try to learn something, and not to prove that another person is wrong. i am sharing my thoughts and experience and its up to you to accept it or not. you did not share anything except your ego.
  • #208
  • Sep 27, 2008 4:13am Sep 27, 2008 4:13am
Quote
every one here try to learn something, and not to prove that another person is wrong.

You obviously haven't been hung around on FF long enough.


Btw, since it seems that you are Wyckoff follower, would you mind sharing your experiences in applying these methods to fx? I am assuming that this type of volume analysis applies to the higher timeframes as it does in the equities markets. Since 80% of fx transaction don't last more than 2 weeks and volume analysis in fx is scarce, you must have quite an edge...
  • #209
  • Sep 27, 2008 4:38am Sep 27, 2008 4:38am
Quoting scexglobal
You obviously haven't been hung around on FF long enough.


Btw, since it seems that you are Wyckoff follower, would you mind sharing your experiences in applying these methods to fx? I am assuming that this type of volume analysis applies to the higher timeframes as it does in the equities markets. Since 80% of fx transaction don't last more than 2 weeks and volume analysis in fx is scarce, you must have quite an edge...

I am sharing my experiences over here: http://www.forexfactory.com/showthread.php?t=105655
  • #210
  • Sep 27, 2008 5:13pm Sep 27, 2008 5:13pm
Well that's stuffed this thread. Pity.

Perhaps the title could have been worded better ie "Why I Trade Without Indicators" and been less confrontational. However surely people are intitled to start a topic for the benefit of those who agree or wish to consider going down this path..

For those in love with the macd, or ma's or vsa etc there are threads on FF in which to take part and discuss different ideas on how to use them. Why is it so hard to let people have a thread to discuss ideas on trading without these tools?
Good Trading
  • #211
  • Sep 29, 2008 12:27pm Sep 29, 2008 12:27pm
Quoting steelhead
In this thread I will talk about why indicators should not be used to base trades on. I will discuss the reasons that they are not a reliable trading tool.

I was at the Forex Expo this weekend. I went to several meetings where they pitched elliot waves,emas, fibo's, mac d. I am going to tell you why these indicators are a trap.


I went to one meeting where the second comment they made was this. The more people that use the 61.8% fibo level the more reliable it becomes. I cannot think of another statement that could be further from the truth. That was a flat out lie. the worst part is this group had 35 people listening to them teach falsehoods.

I welcome discussion on the topic. This should be fun. I will also talk about how reading a chart, and price action is the way to become a consistant trader. You have to look at the bigger picture what is going on behind price.

Questions are welcome I will answer them all.
I made a total of 30 pips but lost all in just a single trade that went bad,quite confident of the market direction only to find out my fingers were already burning-using technical indicators
  • #212
  • Oct 1, 2008 10:49am Oct 1, 2008 10:49am
Quoting aud
Well that's stuffed this thread. Pity.

Perhaps the title could have been worded better ie "Why I Trade Without Indicators" and been less confrontational. However surely people are intitled to start a topic for the benefit of those who agree or wish to consider going down this path..

For those in love with the macd, or ma's or vsa etc there are threads on FF in which to take part and discuss different ideas on how to use them. Why is it so hard to let people have a thread to discuss ideas on trading without these tools?
I do believe the thread author can change a thread title after the fact, if they wish to.
  • #213
  • Oct 3, 2008 10:11am Oct 3, 2008 10:11am
Indicators will fail you if you use them wrongly. Indicators are really helpfull if you use them to get confirmation to your plan to pull the trigger on pre considered support or resistance.
  • #214
  • Oct 3, 2008 10:55am Oct 3, 2008 10:55am
I’ve learn something today.
Forex is about opportunity and learning how to make the most of them.
Indicators are tools which help you with that.
It’s like making a hole: if you dig with your hands you will suffer a lot.
  • #215
  • Oct 4, 2008 4:17am Oct 4, 2008 4:17am
please mind you that using/applying indicators is for analysis comfirmation.it plays a great role in the market.
forexpillariscipline & patience Trader
  • #216
  • Oct 4, 2008 4:22am Oct 4, 2008 4:22am
please mind you that using/applying indicators is for analysis comfirmation.it plays a great role in the market.
forexpillariscipline & patience Trader
  • #217
  • Oct 24, 2008 5:29am Oct 24, 2008 5:29am
I'm a beginner and I'd like to ask you..I know that there are a lot of indicators and tools to help us to trade but what's your favorite indicator or more useful for you?
thanks for answers
  • #218
  • Edited 1:47pm Oct 24, 2008 1:46pm | Edited 1:47pm
Quoting livingFX
I'm a beginner and I'd like to ask you..I know that there are a lot of indicators and tools to help us to trade but what's your favorite indicator or more useful for you?
thanks for answers

erm i think you should find out yourself. things that good for me, does not necessary useful for you. no short cut in forex, have to find out yourself and understand the craft of your system rather then being spoon feed.

to answer your question. i like to use lines. trend line and horizontal lines to spot the critical S and R.
  • #219
  • Oct 24, 2008 2:15pm Oct 24, 2008 2:15pm
The best indi for me and the only one i use is adx (average directional index), try it!
  • #220
  • Oct 24, 2008 5:57pm Oct 24, 2008 5:57pm
Quoting steelhead
So here is an example on the e/j. We are at a 50% fibo level right now. It is a downtrend. Alot of folks will be going short here. Also at 61.8% fibo. Lets see what happens.

Right now its respecting the 50% fibo with some resistance areas that were right at that level. This might be one that works, but in the long run its not a reliable method of trading
there's no prove at all that technicals or indicators are real, but, since folks are respecting fibo levels, lets assume it works 3 times of 7 times, if you put you T/P at +100 and your S/L at -30 you'll be profitable! trust me, its a money management work more than its a forcasting work!
I recommend you read something else as this sentence is now concluded.
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