Yes, they are useless. Indicators are ridiculous except the simple moving average, but even this is only for a quick look at the bigger trend, nothing more, and your eyes can do the same thing. Oversold, overbought, useless, as they are depended on the timeframe you’re looking at. This is why programmers are often bad traders, as they focus all their mental efforts on programming useless indicators and EA’s, which are nothing but filters of price. (Although I love me some non-price related stuff like alerters and auto lotsize calculators. So programmers are great, don’t get me wrong…) Even volume is useless, since you don’t know if the buyers or the sellers are the active ones. It simply translates into more volatility, which offers no predictive capacity. (Prediction = leading = edge, indicators = lagging = no edge). However, there is one tool (which some call an indicator but it’s not, it’s just a tool), which I cannot trade without, and this is the fibonacci extentions. Although I only use the 161.8 and 261.8. (All other numbers I have deleted.) I will give you an example of a trade I took today:
Some will say fibonacci is bull****, but that’s only because they’re looking at the wrong numbers and are drawing it wrong… The golden ratio tells you how far price is gonna EXTEND (true support/resistance) before making a reversal (small or big, doesn’t matter, edge is edge and if you only go for the big fish, then all the small fish will eat your bait = money), as markets, like nature, don’t shrink, they grow and grow and grow (extention). This is why I ignore contraction points like 0.382 and 0.618, which most people using fibonacci focus on sadly.
So yeah, as you can see on the chart there are clear support/resistance levels, BUT the question is, WHICH ONE IS GONNA HOLD? And that, my friend, is where fibonacci comes in, in particular, the 261.8!
(And yes, I like the color blue ) Let my profits run you say? I never let em run. 1:1 risk reward no bull****. Why should I let my profits vanish away because the greedy gambler in me like is not happy with the small fish he caught? It’s not like you can’t enter a 1:1 trade later again anyway… And that’s what it’s all about, ENTRY. Indicators, because of their lagging/reactive instead of predictive nature, will always make you enter too late, and that is why you will loose money as you have found out with your backtests. This is the same reason why it’s always some bull**** indicator system scammers are selling, because they have been unable to make money trading it, they found they can make some selling it…