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Indicators or none?

  • Poll

  • Do you trade with indicators?
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  • #1
  • First Post: Oct 21, 2010 11:12am Oct 21, 2010 11:12am
I'm curious to find out how many people out there trade with no indicators. I'm sure a similar thread has been started before, but I doubt they asked who uses NO indicators to trade with.

Personally I only use trend/support/resistance lines, and every time I try to use an indicator I find that it clutters my charts too much. I've also found that when I chart an indicator I rely on it too much (almost completely).
https://www.huntingtrader.blog
  • #2
  • Oct 21, 2010 11:18am Oct 21, 2010 11:18am
I don't completely trade off indicators but I do put on certain indicators to help me get a better of the market at the given time.
  • #3
  • Oct 21, 2010 11:46am Oct 21, 2010 11:46am
Quoting StockHunter
I'm curious to find out how many people out there trade with no indicators. I'm sure a similar thread has been started before, but I doubt they asked who uses NO indicators to trade with.

Personally I only use trend/support/resistance lines, and every time I try to use an indicator I find that it clutters my charts too much. I've also found that when I chart an indicator I rely on it too much (almost completely).
I don't think either viewpoint will provide the best results in trading.

Indicators can not be used solely as trading signals, if they could everyone would use them and be rich. Where you said you can't rely on indicators completely, you also can't rely on support/resistance lines completely because the point is they are meant to be broken.

Trading with no indicators and only previous support/resistance and price action doesn't allow you to know the economics of what's going on in the market. You never get to see a comparable statistic for how overbought or oversold a market is for a particular time frame. I could easily see someone who trades with no indicators being bewildered by a price shooting through a bottom support line on a long trade because they were unaware the market had been extremely overbought for some time.

I think it should be a healthy mix of the two, especially because the 20, 50, and 200MA's are often strong points of support and resistance.
  • #4
  • Oct 21, 2010 11:50am Oct 21, 2010 11:50am
Is it fair to use 1 Simple moving average, but not as an indicator for entry but rather on how I manage trades AFTER entry?

No indicators (for trade entry decisions)

Horizontal Support and Resistance only... across different time frames.

I consider my SMA a trend statement on my entry time frame,

if my trade entry differs from the trend... I scalp it for quick, fast profits.
if my trade entry is "in tune" with the trend... I try to hold longer.
  • #5
  • Oct 21, 2010 11:52am Oct 21, 2010 11:52am
Quoting StockHunter
I'm curious to find out how many people out there trade with no indicators. I'm sure a similar thread has been started before, but I doubt they asked who uses NO indicators to trade with.

Personally I only use trend/support/resistance lines, and every time I try to use an indicator I find that it clutters my charts too much. I've also found that when I chart an indicator I rely on it too much (almost completely).
I used to trade with Stoch and RSI's with a fair degree of success...

After a few books about chart patterns, now I'm relying only in price action and my T/S/R lines.
  • #6
  • Oct 21, 2010 1:30pm Oct 21, 2010 1:30pm
what would you need indicators for?


http://www.forexfactory.com/attachme...8&d=1287649727
  • #7
  • Oct 21, 2010 1:37pm Oct 21, 2010 1:37pm
Quoting DKallDAY
I don't think either viewpoint will provide the best results in trading.

Indicators can not be used solely as trading signals, if they could everyone would use them and be rich....
I didn't say which viewpoint was better, I just simply wanted to know how many people on these forums use them . I stated what I used as a statement, and wasn't meant to start a debate.
https://www.huntingtrader.blog
  • #8
  • Oct 21, 2010 2:10pm Oct 21, 2010 2:10pm
Quoting StockHunter
I didn't say which viewpoint was better, I just simply wanted to know how many people on these forums use them . I stated what I used as a statement, and wasn't meant to start a debate.
oh I didn't mean to spark a debate, I was just commenting on the two sides because I take the middle. I apologize if it seemed like I was trying to start one!
  • #9
  • Oct 21, 2010 2:31pm Oct 21, 2010 2:31pm
I have personally found that price action in and of itself is the best timing mechanism you can find because it reflects real time trader sentiment.

That being said any given price action signal or pattern needs context that I find that indicators like moving averages, and a single oscillator allows you to "filter" the price signal and improve your batting average.

Finally examination of multiple time frames no matter which time frame you actually enter and manage your trades on, helps provide a broad context of where your particular method lies in the grand scheme...

Even Steve Nison (the widely held expert on price action trading) stated unequivocally that price action alone should not be the basis for trading decisions, but rather a single tool in an otherwise larger tool box.
  • #10
  • Edited 5:14pm Oct 21, 2010 2:36pm | Edited 5:14pm
I use indicators.

IMHO, not using an indicator is like refusing to use a car to go to work. Of course you can get to your destination by walking, riding a bike or a horse. A car is just simply more technically advanced.

Everyone can still achieve to reach their destination by any means. The only difference between a car and an indicator is that learning to drive a car has an organized educational and physical experience training process.

I've been at this game for 10 years, and I haven't seen anyone teach how to use an indicator correctly and in very fine-details. Whatever you have read in books, forums, media, in seminars, etc, are very basic.

It's like telling you that; here is the steering wheel, turn left and right wherever you want to go. Step on the accelerator to move and step on the brakes to stop. Now you are all set to drive, off you go, all on your on, on a busy highway. This is as much education you are going to get about indicators.
  • #11
  • Oct 21, 2010 2:42pm Oct 21, 2010 2:42pm
There is nothing wrong to use any indicator as a tool if you know how to use it. As with many other things, very few even know how to correctly spot divergence on such a common tool like MACD.
Measure twice, cut once
  • #12
  • Oct 21, 2010 5:47pm Oct 21, 2010 5:47pm
The trick for me is to only use a couple indicators and get to know them well. It takes a lot of screen time but I think it's worth it.

I only use Bollinger bands and RSI. They, along with the obligatory candlesticks, help me decide what the current market conditions are and whether it's worth risking an entry or not. I would struggle without them.

I reckon any indicator can be useful, but you have to take the time to get to know it, you've got to be able to recognise certain patterns and movements when they happen. Again, it comes down to screen time. . .
  • #13
  • Oct 21, 2010 6:12pm Oct 21, 2010 6:12pm
I'd like to trade someday without any indicator, and have good results! Sometimes i try predicting the market with no indicators, sometimes i'm right sometimes not.anyway i add to my main chart the fibo and macd, and sure use the support resistance and trend lines,patterns..
finally.. no matter what u use, the aim is to be successful
  • #14
  • Oct 21, 2010 8:02pm Oct 21, 2010 8:02pm
Indicators are good when you're new to fx trading, they give you confidence...when you start its hard to trade a naked chart.
But there is no better "indicator" than price action anyway
And we all know the price action is making indicators...not the other way around.

Plot a naked chart...few support & resistance lines...a good money management...that's all you need.
COT: The precious data ignored
  • #15
  • Oct 21, 2010 8:52pm Oct 21, 2010 8:52pm
when i started i traded on naked chart,didnt know what indicators even meant,so i traded like that for ayear on 1 a practise accoutn,and a yera onreal one,nd lost all my money in the real account,because,u have to follo eveything always and have to be aware 100% whats happenening a real brainer u have to be ,after 6 hours on the charti would always get tired,so now im practising on demo and using indiacators nd making quite a lot of gains,because i know about the chart movements and how mr .market feels and what the indicators say,its a real derby clash over there with the currency pairs eur vs usd at mt4 arena
and easier to predict the winner of the match
so i can say that for begginers the best thing for them is to follow plain sight,read a few books nd test it out,tehn after some time move with indicators,beacause in evrything experience is mother of all
  • #16
  • Oct 21, 2010 9:09pm Oct 21, 2010 9:09pm
for the people that trade price action only, do you use bars or candles for your chart?

I've been a full time stocks day trader and have been gradually switching to forex for some months now, and it is just unheard of that someone would trade a fully naked chart. So, in other words, I'm interested! Fill me in, I'm reading that price is everything thread.
  • #17
  • Oct 21, 2010 11:29pm Oct 21, 2010 11:29pm
Quoting DKallDAY
for the people that trade price action only, do you use bars or candles for your chart?

I've been a full time stocks day trader and have been gradually switching to forex for some months now, and it is just unheard of that someone would trade a fully naked chart. So, in other words, I'm interested! Fill me in, I'm reading that price is everything thread.
There is no real difference between bars and candle, isn't it ?
But to answer your question i only use candles...its more clear....trading naked is the future!!!
COT: The precious data ignored
  • #18
  • Oct 22, 2010 12:05am Oct 22, 2010 12:05am
Quoting kuroro001
There is no real difference between bars and candle, isn't it ?
But to answer your question i only use candles...its more clear....trading naked is the future!!!
Same info for the same time frames so they're the exactly the same, candles are just more visual.

And I still don't get it! it's okay tho, it'll click eventually.
  • #19
  • Oct 22, 2010 12:21am Oct 22, 2010 12:21am
this kind of thread has been discussed before,check similar threads for more information,
  • #20
  • Oct 22, 2010 12:32am Oct 22, 2010 12:32am
There is no yes or no.
It depends on you mental. All system are fairly good enough, one thing u have to remember.

Trading is all about mental and psychology and proper money management.

I use to have like 4-5 indicators jam together. The result? complicated because one need to agree with one another for me to open a position.

So now, i just monitor Price (not price action) but only price and their S and R.

Good enough for me.
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