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Best informational indicators

  • #1
  • First Post: Dec 23, 2011 5:51am Dec 23, 2011 5:51am
I'm kinda tired of some indicators that try to predict market movement.
Could you please suggest some useful indicators that give us helpful information when trading?
Thanks in advance,
Hai
  • #2
  • Dec 23, 2011 6:20am Dec 23, 2011 6:20am
Quoting perfwill
I'm kinda tired of some indicators that try to predict market movement.
Could you please suggest some useful indicators that give us helpful information when trading?
Thanks in advance,
Hai

Hi

Price action is the best indicator there is.

I am not a fan of indicators but having said that I would say to you:

1. Ensure you understand the maths behind any indicator you want to use otherwise you will not understand what it is telling you.

2. Indicators tend to work with only one kind of market each. But the market either trends or ranges so you need different indicators for different markets.

3. If you use an indicator use only one.....
  • #3
  • Dec 23, 2011 6:45am Dec 23, 2011 6:45am
I think it is not so much for a single indicator or a bunch of them, but a system which consists of several of them and are fitted together. Unless you are trying to create a system of your own. Its also a question of finding proper indicators to the timeframe you like to trade. Some will work better on some timeframes and some on others. Been through hundreds of them (like many others here I think ).

There are several profitable systems here on FF if you take the time to learn how to trade them. Check out eg. Dredding82 Price action trading with indicators, Udine's Invictus or choros by Kostas to name just a few I have studied. They all are based on a specific combination of indicators, etc and are profitable if traded properly. Select one that suits your needs and give it a try for atleast couple of months so that you will see if it works for you. Just some thoughts. Hope this helps.

Quoting perfwill
I'm kinda tired of some indicators that try to predict market movement.
Could you please suggest some useful indicators that give us helpful information when trading?
Thanks in advance,
Hai
  • #4
  • Dec 23, 2011 7:12am Dec 23, 2011 7:12am
try ichimoku that's been around for over 40 yrs
  • #5
  • Dec 23, 2011 8:31am Dec 23, 2011 8:31am
Quoting MaxDoom
Hi

Price action is the best indicator there is.

I am not a fan of indicators but having said that I would say to you:

1. Ensure you understand the maths behind any indicator you want to use otherwise you will not understand what it is telling you.

2. Indicators tend to work with only one kind of market each. But the market either trends or ranges so you need different indicators for different markets.

3. If you use an indicator use only one.....
Thanks for your quick reply and advices, I've just taken the #1 advice, studied the formula of RSI, very helpful.

Quote
I think it is not so much for a single indicator or a bunch of them, but a system which consists of several of them and are fitted together. Unless you are trying to create a system of your own. Its also a question of finding proper indicators to the timeframe you like to trade. Some will work better on some timeframes and some on others. Been through hundreds of them (like many others here I think ).

There are several profitable systems here on FF if you take the time to learn how to trade them. Check out eg. Dredding82 Price action trading with indicators, Udine's Invictus or choros by Kostas to name just a few I have studied. They all are based on a specific combination of indicators, etc and are profitable if traded properly. Select one that suits your needs and give it a try for atleast couple of months so that you will see if it works for you. Just some thoughts. Hope this helps.
I like scalphling with the M1 timeframe, kinda fast but very interesting ^^! Of course price action is the main and the most important thing.
Thanks for the recommendations, I'll take a look.
  • #6
  • Dec 23, 2011 10:00am Dec 23, 2011 10:00am
Quoting perfwill
I'm kinda tired of some indicators that try to predict market movement. Could you please suggest some useful indicators that give us helpful information when trading?
What "information" do you want them to give you, how do you want them to be helpful, if you acknowledge that they can't "predict" anything?

Quoting Whistlepips
I think it is not so much for a single indicator or a bunch of them, but a system which consists of several of them and are fitted together.
Why would that be, Whistlepips? If neither a single indicator nor even a bunch of them are predictive of market direction, why and how would a system comprising several of them fitted together somehow, magically, become predictive of anything? Have you ever seen one that is?

Quoting Whistlepips
Been through hundreds of them (like many others here I think ).
Indeed.

And yet you still somehow experience a feeling of hope over experience, in this regard? Why is that, do you think?!
  • #7
  • Dec 23, 2011 10:22am Dec 23, 2011 10:22am
Quoting perfwill
I'm kinda tired of some indicators that try to predict market movement.
Could you please suggest some useful indicators that give us helpful information when trading?
Thanks in advance,
Hai
If you're looking for the simple one, maybe you can try 123 MW trading strategy, when you get used to it, You don't even need indicators to trade. Here are some examples of the trades. As far as I know you can apply it on any time frame. Since it is a basic price action tading, the entry and exit is simple as 123...

Hope this help
  • #8
  • Dec 23, 2011 10:35am Dec 23, 2011 10:35am
I dont mean to be rude Xela, but I will not continue this discussion with you. Just tried to be of some help related to the questions in the beginning of the tread. If you like, you can check out and try the systems on those threads I mentioned and see for youself. They are based on multiple indicators and are profitable. This is my last reply for this thread.


Quoting Xela
What "information" do you want them to give you, how do you want them to be helpful, if you acknowledge that they can't "predict" anything?



Why would that be, Whistlepips? If neither a single indicator nor even a bunch of them are predictive of market direction, why and how would a system comprising several of them fitted together somehow, magically, become predictive of anything? Have you ever seen one that is?



Indeed.

And yet you still somehow experience a feeling of hope over experience, in this regard? Why is that, do you think?!...
  • #9
  • Dec 23, 2011 12:17pm Dec 23, 2011 12:17pm
Quoting Whistlepips
I dont mean to be rude Xela, but I will not continue this discussion with you.
I'm sorry to hear it.

I was intrigued by your comments, albeit that I found their logic defeated me.

I'm baffled that my questions appear, somehow to have offended you (I think?).

That wasn't my intention at all, but apologies anyway, if they somehow did - so sorry if I touched a "raw nerve", or whatever.

Quoting adianto
If you're looking for the simple one, maybe you can try 123 MW trading strategy,
I think that's a great sort of trading method, and I know from my own personal experience that it can be consistently profitable.

But it isn't intrinsically an "indicator-based" system, at all.

It's using price information. It's using technical analysis, for sure. But not all technical analysis involves "indicators".
  • #10
  • Dec 31, 2011 2:25pm Dec 31, 2011 2:25pm
Quoting Xela
If neither a single indicator nor even a bunch of them are predictive of market direction, why and how would a system comprising several of them fitted together somehow, magically, become predictive of anything?


A profound question that needs to be satisfactorily resolved by traders who use indicator-signaled entries (or exits).
  • #11
  • Dec 31, 2011 4:27pm Dec 31, 2011 4:27pm
i discovered forex by mistake, 2 yrs ago. also i begun with stochastic, i started to study it very deeply, lets say i know how it works, and bla bla....

if you are carefull enough you eill see that all indicators are trying to say the same thing. if one fail all fail, this is my opinion. but i.m in love with sochastic.
it give me a posible sign, entry is mine, exit is mine.
PS: happy new year. and as many peeps as you deserve.
  • #12
  • Dec 31, 2011 9:34pm Dec 31, 2011 9:34pm
indicators indicate

indicate= point out, show as by measuring or recording, to make known----dictionary.reference.com

nowhere in the definition does it say, "predict"

indicators are useful if you KNOW what you want them to indicate, i will give you some examples and some logical uses for them.

Ranges= ATR,ALR,AHR,ADR
Average True Range= the range of the candle from high-low (in forex you don't need the traditional prev close to current low, or prev close to current high, due to no gaps except weekend) what this indicates is the objective, normal range you can expect from the Euro.

Average Low Range= on average what you can expect as far as the lows from open,
Average High Range
Average Displacement Range (displacement a Vector of beginning point to end point) open to close.

specially if you run statistics on probabilities and use range to derive to a strategic money management. A baseline is needed to understand normalcy vs change and realistic expectations.


simple moving average= (not the squiggly line) the number itself helps with indicating what is fair market value for the time you are averaging. as to signal if price is expensive or cheap in relation to the average price.

Bollinger Bands= help you with 2 standard deviations to understand the Range in volatility viz a viz the average and when it becomes a change in direction as opposed to normal price variation.

CCI is same concept as bollinger bands, it measures price against mean in relation to standard deviations.

Parabollic SAR= will use a mathematical parabola, which is based upon the concept of time decay, moving toward a trending.

Pivot Points= basically take the ranges of previous day, and give you projected exhaustion points.

fibs= measure strength of the wave, and geometric projection if you learn to use them logically. here is something i posted on the matter before

""mystical" was in quotation marks.

however lets debate about this in a logical way.

you agree that price moves in waves, impulse and corrective right?

<50% will show strong continuation tendency right?
68% still signals continuation right?

the more % retrace, the more it looks like a mutation in formation right?

100% looks like a range correct?

so what is the most logical way to take advantage of a 100% retrace? anticipate range condition right?


fibs are measurement of wave % , then if you look at the geometry of wave formation from 100% with support the logical conclusion is 100% approx extension for wave pattern.

68%< you can expect >100% extension from this point of support right? or else it is not a continuation"


as said to you before though, you need to UNDERSTAND THE THEORIES BEHIND THE INDICATORS

if you want to use CCI, BB, or anything to do with a moving average, and standard deviations.

learn volatility theory
standard deviations
normal distribution
stochastic model
AVT INVENIAM VIAM AVT FACIAM
  • #13
  • Last Post: Edited 4:51am Jan 3, 2012 3:41am | Edited 4:51am
As maxdoom said price action has to be key, particularly at areas of support and resistance. The thing is about S&R and trend-lines is that they appear the same across all the time frames and so it can be argued that a greater number of traders will also be looking at the same thing.

Oscillating indicators, lets take the stochastic as an example, may be rolling over on the 30min, climbing on the 15min and rallying on the 5 min - Useful in its own way if you can build a strategy around that information, powerful when all timeframes are aligned, but sometimes contradictory. Daytrader Rockstar has some excellent educational information on stochastics.

Indicators based on price, such as the ADX, In my opinion do not present much additional information that cannot already be read from looking at the price chart. Personally I use an indicator to add information that I cannot see in the price chart, such as divergence between the RSI and price. More recently I have used the Money Flow indicator as it incorporates both price and volume into the equation and the same strategies used on the RSI apply to the MF.
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