What's your favorite indicator and how do you use it? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Who is your favorite broker and why? 5 replies

If you use a breakout model, how do you determine your TP and SL? 9 replies

Calling all Divergence traders; what's your favorite indicator? 5 replies

Whats your favorite Low Volatility pair? 5 replies

the best/your favorite indicator/way to spot divergence? 4 replies

What's your favorite indicator and how do you use it?

  • #1
  • First Post: Apr 28, 2016 9:42pm Apr 28, 2016 9:42pm
So normally I'm really hit or miss with trading with and without indicators. So my question for this forum is what is your favorite indicator. And how do you trade it? I'm looking to add one maybe 2 ways to confirm a trade and well I think hearing others inputs on this would be amazing. So please write your spill and explain to me shunt works for you.

Thank you
  • #2
  • Apr 28, 2016 11:32pm Apr 28, 2016 11:32pm
I don't think a single indicator is going to deliver the goods. What you probably need is a combination of indicators avoiding multi-collinearity (multiple counting of the same information). You could probably take one indicator from the three types of indicators (trend, momentum and volatility indicators) and then stick with that combination. For instance, you could choose Bollinger Bands with RSI or MACD, or Moving Averages or ADX with Stochastics, etc. After a couple of thousand hours of watching historical and live charts with that combination, you are going to start identifying recurring patterns which are more or less reliable in predicting the future direction of the market.

To answer your query, I use Bollinger Bands with CCI, though I use them rather unconventionally.
  • #3
  • Apr 29, 2016 4:47am Apr 29, 2016 4:47am
Indicators can be useful as confirmation tools. Some are good for ranging markets, (ob/os family) stochs, rsi, williams etc. and some are good for trending markets, (momentum family), macd, awesome etc.
You just need to decide what markets are more suited to your strategy.
An alternative method of use & probably the better way is to use them to identify divergence signals.
It never gets easier, you just get better
  • #4
  • Apr 29, 2016 5:20am Apr 29, 2016 5:20am
Quoting Shabs19
Indicators can be useful as confirmation tools. Some are good for ranging markets, (ob/os family) stochs, rsi, williams etc. and some are good for trending markets, (momentum family), macd, awesome etc. You just need to decide what markets are more suited to your strategy. An alternative method of use & probably the better way is to use them to identify divergence signals.
Brother the best indicator is price. At the end of all, indicators are lagging and will adjust themselves dependent on what price does. I say it's best to become more proficient in what price is saying and then add indicators of your choosing to confirm the trade, i.e MAs crossovers, etc. Hope this helps.
  • #5
  • Apr 29, 2016 6:15am Apr 29, 2016 6:15am
Quoting chartsndream
{quote} Brother the best indicator is price. At the end of all, indicators are lagging and will adjust themselves dependent on what price does. I say it's best to become more proficient in what price is saying and then add indicators of your choosing to confirm the trade, i.e MAs crossovers, etc. Hope this helps.
price is the best indicator and your mind is an even better one but I'm asking what do YOU use.
  • #6
  • Apr 29, 2016 6:37am Apr 29, 2016 6:37am
Quoting navyforex
{quote} price is the best indicator and your mind is an even better one but I'm asking what do YOU use.
I see price reacting to areas that my mind is learning to interpret called supply demand zones, where the "institutional traders" are placing their orders. I am not posting any specific views simply because I am relatively new to trading and don't wish to put misleading information in here. I am learning from someone that has been trading for ten years but I am still grasping the concepts and putting in chart time. He does state "chart time chart time chart time" is crucial for your development in reading the charts with accuracy. No indicator will shorten the required time to become proficient at this. Hope this helps brother.
  • #7
  • Apr 29, 2016 8:09am Apr 29, 2016 8:09am
Quoting chartsndream
{quote} Brother the best indicator is price. At the end of all, indicators are lagging and will adjust themselves dependent on what price does. I say it's best to become more proficient in what price is saying and then add indicators of your choosing to confirm the trade, i.e MAs crossovers, etc. Hope this helps.
"An alternative method of use & probably the better way is to use them to identify divergence signals."

This is the most effective use of indicators, this makes indicators leading and not lagging. Study the different types of divergence.
If anything they are advance warning signals preventing you from entering/timing the market in the wrong direction.

I do not use moving averages crosses, however professionals will use MA's as support & resistance lines.
It is all about increasing your knowledge base of how to make effective use of tools, why, how & when to use them.
Often the alternative use is better than the way, the use they were actually designed for.

My preferred indicator is the MACD Osma for divergence.
It never gets easier, you just get better
  • #8
  • Last Post: Apr 29, 2016 8:24am Apr 29, 2016 8:24am
Quoting Shabs19
{quote} "An alternative method of use & probably the better way is to use them to identify divergence signals." This is the most effective use of indicators, this makes indicators leading and not lagging. Study the different types of divergence. If anything they are advance warning signals preventing you from entering/timing the market in the wrong direction. I do not use moving averages crosses, however professionals will use MA's as support & resistance lines. It is all about increasing your knowledge base of how to make effective use of tools,...
Thank you brother. I learned something from your post today.
0 traders viewing now