What indicators do you use in your trading system?

View Poll Results: Which indicators do you use in your trading system?

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  • Bollinger Bands

    1 8.33%
  • MACD (Moving Average Convergence Divergence)

    5 41.67%
  • Parabolic SAR

    1 8.33%
  • Stochastic

    6 50.00%
  • RSI (Relative Strength Index)

    1 8.33%
  • ADX (Average Directional Index)

    3 25.00%
  • Ichimoku Kinko Hyo

    1 8.33%
  • Volume

    2 16.67%
  • Price Channel

    1 8.33%
  • Pivot Points

    3 25.00%
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Thread: What indicators do you use in your trading system?

  1. #1
    Proximus's Avatar
    Proximus is offline Senior Member
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    Post What indicators do you use in your trading system?

    Which of the many indicators do you use/implement or just prefer in your trading system?
    I know that different strategies require different indicators,but let's just see which indicators are more popular than others.I`ve listed some popular ones from Metatrader 4,please answer the poll,if you have many ones then you are free to select more than 1.

  2. #2
    Proximus's Avatar
    Proximus is offline Senior Member
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    Ok let me start.I am using a trend following/trend reversal system when strong trend is in the market,when the trend is weak then mainly focus on scalping the ranging movements.Taking profit and stop loss levels i determine with fibos and from chart patterns if there is any.The main indicators I use to identify trend,bouces,strength or volatility are:
    - Stochastic (14,3,3)
    - ADX (14,CLOSE)
    - Volume
    - MACD (5,14,3,CLOSE)

    Now your turn

  3. #3
    stonecoldmichael is offline Senior Member
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    I trade Price Action. I use a 10, 21, and 200 EMA just to determine trend direction and relative strength since I trade with the trend. The bread and butter of Price Action is S/R levels and clean candlestick formations though- which are indicators as well.

  4. #4
    Proximus's Avatar
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    Quote Originally Posted by stonecoldmichael View Post
    I trade Price Action. I use a 10, 21, and 200 EMA just to determine trend direction and relative strength since I trade with the trend. The bread and butter of Price Action is S/R levels and clean candlestick formations though- which are indicators as well.
    Interesting approach.Walter Peters is also in the favor of "naked trading",he is a professional full time trader,you can learn much from him,just google it.As for the 200 EMA why u use such a long term average,like in a 15 min chart thats almost 3 days going back.I go back mostly 20 and maximum 50 positions since further going back may not be that accurate,this is my view of course,what do you think?

  5. #5
    stonecoldmichael is offline Senior Member
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    I'll check out Walter Peters.

    The 200 EMA isn't really use for any major decisions- just general insight. It's just a very popular indicator for people to determine general direction and strength of the long-term trend.

    A couple of examples:

    - If the 200 EMA is bending down, price is moving down, and a bullish rejection forms; that's a good indication that price wants to continue down.

    or

    - If the 200 EMA has a wavy pattern to it; you can assume that any favorable signals that form do not have a great amount of long-term strength behind them as if the 200 had a distinct curve to it.

    So yeah- it's not really used in great specifics by most people. But it is a popular indicator of relative market direction over a more significant length of time. Since it is aggregated from a larger body of information; you can put more weight on what it is telling you. A downtrend present on a 200 EMA is going to be more significant than one on a 10 or 50; although 50 and 100's are fairly commonly used too.

    Even if you're a short-term trader; you wouldn't want to put a lot of weight on a 10 EMA anyways because what's to say price didn't just hit a short consolidation or just had an abnormal spike of activity. You'd have no real frame of reference. The EMAs are just one piece of the larger decision making process.

  6. #6
    Royalblood is offline Junior Member
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    I do not like to use much indicators, if pivot points were considered as indicator that's why given my vote to that, as they are very good indicators to know the possible market direction.

  7. #7
    vagar11 is offline Newbie
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    I have voted for stochastics but I use it just to confirm my entry.

  8. #8
    Kanbike is offline Newbie
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    You forgot to put options for "eyes" or "nothing"!

    I don't trade with any indicators, I trade pure price action - with the help of my eyes

  9. #9
    Proximus's Avatar
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    Quote Originally Posted by stonecoldmichael View Post
    I'll check out Walter Peters.

    The 200 EMA isn't really use for any major decisions- just general insight. It's just a very popular indicator for people to determine general direction and strength of the long-term trend.

    A couple of examples:

    - If the 200 EMA is bending down, price is moving down, and a bullish rejection forms; that's a good indication that price wants to continue down.

    or

    - If the 200 EMA has a wavy pattern to it; you can assume that any favorable signals that form do not have a great amount of long-term strength behind them as if the 200 had a distinct curve to it.

    So yeah- it's not really used in great specifics by most people. But it is a popular indicator of relative market direction over a more significant length of time. Since it is aggregated from a larger body of information; you can put more weight on what it is telling you. A downtrend present on a 200 EMA is going to be more significant than one on a 10 or 50; although 50 and 100's are fairly commonly used too.

    Even if you're a short-term trader; you wouldn't want to put a lot of weight on a 10 EMA anyways because what's to say price didn't just hit a short consolidation or just had an abnormal spike of activity. You'd have no real frame of reference. The EMAs are just one piece of the larger decision making process.
    Allright I understand you.It is really nice to see a broad view of the price.You can also use it as a moving support/resistance zone and a strong one.One thing I dont get is why not use 200 SMA, it would give you a smoother view? Also do you use FIB levels,pivot points for target/stop loss or just trade basic chart patterns?


    Quote Originally Posted by Kanbike View Post
    You forgot to put options for "eyes" or "nothing"!

    I don't trade with any indicators, I trade pure price action - with the help of my eyes
    Not even ADX? I mean not for the basis of your tehnique but just for an extra confirmation if you trade on a trending bounce/breakouts or whatever.

    And what's with ICHIMOKU? C'mon nobody really uses it,it works like magic on JPY pairs with like 60-70% winning rate by daytrading on daily timeframed trending markets...
    Last edited by Proximus; 07-11-2013 at 09:42 PM.

  10. #10
    stonecoldmichael is offline Senior Member
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    Yeah. Pure price action doesn't use indicators past S/R lines and formations in general. That's essentially what I do; I just use EMAs as a visual indicator to see the smoothness of a given trend.
    Proximus likes this.

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