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Indicators for rookies

  • #1
  • First Post: Nov 14, 2008 5:47pm Nov 14, 2008 5:47pm
Ok then. This week i spended a lot of time researching about few indicators that i was interested on. I did this start determining a trading strategy for the near future.

The main idea is to talk about thed indicators we chose and talk about the way they are working out for us.

In that direction i invite everyone on this great forum to participate.

Have fun and trade!
  • #2
  • Nov 14, 2008 6:08pm Nov 14, 2008 6:08pm
great baby! This could become a good place for us (begginers or not) to make a feedback channel about the way the indicators could interact together.

So...right now i'm using the Bollinger bands with EMA... the first placed on 20 periods and the EMA on 15. i'm staring to understand that if the EMA crosses the upper Bollinger, it will necessary go to the middle...but i could be wrong. I'll take some screenshots and i'll get them here!

Mr or Ms Jetson...good thread! see ya baby!
  • #3
  • Nov 14, 2008 6:38pm Nov 14, 2008 6:38pm
Hi there everyone, well I've been working on an indicator, but haven't seem to understand it well. I'm talking about the Williams Percent Range, the only thing I know is that it helps you predict whether the trend might rise or just lower, depending if the market is oversold or overbought. Anything else to add? I would appreciate it a lot.
  • #4
  • Nov 14, 2008 6:59pm Nov 14, 2008 6:59pm
I'm not bagging this thread idea, but just to be helpful...
Do what you have to guys, but you and millions others take this indicator route. So many chase for years. REALLY years.
(Some , if traded correctly CAN be profitable, don't get me wrong)

The best indicator is price. Where's it been? What did it do when it last got there? Is the current move a duplicate of what happens most of the time in that same situation? (I said MOST of the time. It's NEVER all.)

Start reading from post 1 in the James16 Chart Thread (In interactive trading) . There are other price action based threads too.

KittyKat you're already heading down the wrong path mentally when you say "I could be wrong" . The best thing someone can do for you now is to say stop before you learn a lot of very hard habits to lose.
"I Could be wrong" implies that you have to be "right" to profit in trading. It's not about being "right". It's about taking trade setups that , over say 10 trades, you are ahead account-wise because you have an edge.
.
Bundy's status today: "Waiting..."
  • #5
  • Nov 14, 2008 7:05pm Nov 14, 2008 7:05pm
Learn Support & Resistance, it will over the years do much more for you than any indicator will.
  • #6
  • Edited 8:33pm Nov 14, 2008 7:08pm | Edited 8:33pm
Yes, before you spend a whole lot of time on indicators -spend some time in the James16 thread.

If your intention is to continue indicator studies - i suggest that you at least make them colorful on the chart - colorful is good I've seen some beautiful ones. Didn't do me any good though cause I couldn't see the candles
Edit: Some of this chart art is nice:
http://www.forexfactory.com/showthre...+art#post65685

Edit: There are some that use indicators and do quite well. Please do continue your research into them as only you should make the decision on how you trade.

Last Edit When you have read through James16 - go to this thread http://www.forexfactory.com/showthread.php?t=57639
This thread has the potential to make you a trader.
In trading, there is no bullshit. You either make money or you don't.
  • #7
  • Nov 14, 2008 9:20pm Nov 14, 2008 9:20pm
Yes! Indicators are important part of forex. Thanks for that link man. I’m trying with some of them and I found good and bad ones in my little experience. Just a situation of time. It’s true they can’t predict the future but what can? Be complete here is the goal.
  • #8
  • Mar 4, 2015 3:00pm Mar 4, 2015 3:00pm
Quoting bundyraider
I'm not bagging this thread idea, but just to be helpful... Do what you have to guys, but you and millions others take this indicator route. So many chase for years. REALLY years. (Some , if traded correctly CAN be profitable, don't get me wrong) The best indicator is price. Where's it been? What did it do when it last got there? Is the current move a duplicate of what happens most of the time in that same situation? (I said MOST of the time. It's NEVER all.) Start reading from post 1 in the James16 Chart Thread (In interactive trading) . There...
Aren't indicators a form of price action? As far as I know, reading candlestick and finding indicators in them is all what price action is all about.

Secondly, thank you for that last sentence. I really hadn't thought about it that way yet.
  • #9
  • Mar 6, 2015 12:56am Mar 6, 2015 12:56am
Quoting bundyraider
I'm not bagging this thread idea, but just to be helpful... Do what you have to guys, but you and millions others take this indicator route. So many chase for years. REALLY years. (Some , if traded correctly CAN be profitable, don't get me wrong) The best indicator is price. Where's it been? What did it do when it last got there? Is the current move a duplicate of what happens most of the time in that same situation? (I said MOST of the time. It's NEVER all.) Start reading from post 1 in the James16 Chart Thread (In interactive trading) . There...
Agreed!
Indicators can help trading but I think you shouldn't rely on them that much. Since indicators only follows the price movement and it doesn't predict where the price is going.
  • #10
  • Edited 4:10am Mar 6, 2015 2:19am | Edited 4:10am
Quoting VicWraith
{quote} Agreed! Indicators can help trading but I think you shouldn't rely on them that much. Since indicators only follows the price movement and it doesn't predict where the price is going.
Unfortunately, nothing can predict where the price is going. If we can, trading in forex wouldn't be so risky.
  • #11
  • Mar 6, 2015 11:38am Mar 6, 2015 11:38am
Forex Trading Indicators have been in use for ages. They do not work all the time, but they have been useful in most of the times and that is what matters. In forex, you can never be 100%, but what is necessary is that you get things right more often than you get them wrong.

Indicators rely on past statistical data about the particular asset. They tell what just happened, rather than what will happen and since most traders interpret them the same to try to predict the next direction of the price, at time it ends up being correct because most traders made a similar decision based on a similar source.
  • #12
  • Sep 2, 2015 8:05am Sep 2, 2015 8:05am
Hello to all,
Yes, indicators play a very important role in helping the traders to understand the price action. Understanding technical indicators for a newbie could take a lot of time. Being a newbie, I rely on MACD, EMA and RSI indicator which makes me understand the price action in a better way.
One should even go for news, and other economic events that would affect the price movement because each time technical indicators don’t show a true picture. Clubbing technical indicators with news/fundamentals would give a clearer picture.

Have a good day!!
  • #13
  • Sep 2, 2015 12:46pm Sep 2, 2015 12:46pm
I think the indicator that suits newbies is the MACD and moving averages. These are easy to get idea about price movement and reversal things.
  • #14
  • Oct 7, 2015 9:27am Oct 7, 2015 9:27am
One of the main benefits of trading off indicators is they help you make more objective decisions. Instead of relying on pure price action where it is hard to quantify exactly what a "head and shoulders" is, trading a moving average cross gives you a set of clear, explicit rules you can backtest and then trade live.

Finding the relationships between indicators is also incredibly important. Trading off an RSI alone isn't going to work most of the time but if you only look for over-bought or over-sold reversal signals in a volatile, choppy market (as defined by another indicator), you can greatly increase your chances of success.

Finally, managing expectations is incredibly important. If you can find a strategy that's consistently 50% accurate with a 1:2 risk-to-reward ratio you are in great shape! However, many inexperienced trades are looking for unrealistic returns and end up risking way too much per trade.
  • #15
  • Oct 7, 2015 5:43pm Oct 7, 2015 5:43pm
Quoting winb1g
Aren't indicators a form of price action?

No; they're not.

"Price action" methods are ways of trading without dependence on indicators.


Quoting winb1g
As far as I know, reading candlestick and finding indicators in them is all what price action is all about.

Apologies for the contentious tone, but this really is deeply mistaken.

Many price action traders don't use candlesticks at all (as well as not using indicators).

And even among those who do, candlestick patterns are certainly not considered "indicators".
  • #16
  • Oct 23, 2015 8:40am Oct 23, 2015 8:40am
1. levels of support and resistance
2. alligator+Bollinger+MA (with your own periods)
3. trendlines
4. Fractals
That's enough for me
  • #17
  • Dec 24, 2017 5:40am Dec 24, 2017 5:40am
Quoting tommyd
Learn Support & Resistance, it will over the years do much more for you than any indicator will.
So true! Support/Resistance is the great technical tool! In my live trading I always use daily S/R levels for identifying the market trend.
  • #18
  • Last Post: Sep 16, 2020 3:14pm Sep 16, 2020 3:14pm
Every rookie trader should be very serious about their trading. They should focus on making money.
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