Hello guys
I have a question about technical analyse.
What ,in your opinion, you think that is better , to analyse the market with indicators (+funament) or with tools like trend-lines,channels, fibo etc(+funtament).I know that to combine is better but which method is more profitable if separate them.(sorry for mistakes)
Thanks in advance.
Well, I guess there are some traders soon leaving all sort of their opinions about it. I can just say: Test it for yourself. You can only have faith in something you know for yourself and where you do not need to believe in others opinions. As losses are inevitable, if them occur, you need this faith. Use what works for your system and drop what doesn’t work. All those tools have in one way or another a reason why they are so popular. Tho, just that something is popular doesn’t mean it’s working for your system.
I do prefer the most simple approach possible, but that doesn’t mean a complicated approach wouldn’t work. So, test it for yourself. Also look what you are comfortable with. It’s not nice to have a great system which is hard to trade.
I’ll also agree with bucks on this, the simpler a form of analysis, usually the more successful it will be. I’m a strong believer that the more variables you have in your analysis the more times you can go wrong and let your emotional trading instincts take advantage of you.
Sure some people like to use as many different forms of analysis as possible, but when drilling down to the details it’s true to say that ALL indicators are derived from pure price action. This then begs the question of should you even need an indicator at all as the price is what’s important!
Hear hear. The other reason simple is better is that it is much easier to avoid data-fitting any back-test with a simple system.
Thank you all guys.I will follow your advice 