Indicators for beginners

By the way, using trading indicators is not a bad thing actually but the problem is depending on only trading indicators! I handle my live trading account based on fundamental data and statistics but till now I use moving averaging trading indicator for identifying reliable swing points of market during news sessions! That means, you need to know details about, how to use trading indicators for making better trading result!

lexys,
Thank you very much for your opinion, you have valuable experince.
I just thought, that indicators will help me to make technical analysis more effectively. But now I undertand, that most of them are not precise.
And I dont really understand why people use MA. I Think, the directio of trend is usually visible without this indicator. So, you think, that succesfull traders dont usually use indicators?

And heve tried any others? How do you think, is it really important to use indicators? Or most traders don`t use them?

First time when learn forex trading I am read simple moving average indicator, and using two sma with different variable, with rules if sma with smallest variable crossing up bigger sma that use higher setup hence time to buy and likewise, but in reality is not easy like as on theory and still facing may time loss

I agree.

One of the “market wizards” interviewed by Jack Schwager in his book explains it very simply: he suggests that you should print the chart, pin it on your wall, stand 3 metres away from it, and see whether or not you can [I]easily[/I] identify a trend (if you can’t, there probably isn’t one within the time-frame you’re looking at).

Be aware, though, that a trend exists within a specific, defined time-frame only, and that it’s normal for any instrument to be trending in one direction within the specified time-frame while either not trending at all or trending in the opposite direction within a different time-frame.

I think that [I]many[/I] successful traders don’t, anyway, and the ones who do are using them sparingly and for [U]very[/U] different reasons and in very different ways from most retail traders - and typically [B]not[/B] as entry signals.

Hi, I have tried others and found that I was trying to persuade myself that there were trading opportunities because it seemed the indicators said so.
Its only when I realised that indicators can only show what has already happened in the past rather what may happen in the future, and I was better without them that my trading took off.
SMA is useful for showing which direction a trend is in, but even with that I found I didn’t need it after practice, I could see the trend without it

When I started FX I used to rely on the CCI Indicator (Commodity Channel Index). Works similar to a stochastic just not as complex. It has one signal line which moves between -100 and 100. Standard Period is 20, but I use to use 17 to sharpen.

Entry signal is a break above the -100 from below (Long Signal) or a break below the 100 from above (short signal).

Just a nice simple confirmation Indicator that I used to trade on its own to make a few nice trades.

SMA or an EMA are great for showing weak and strong trends and also take some background noise out of the candles.

I tried a bunch of indicators and at one point my chart was littered with them.
I gradually reduced it to just a 50EMA, 200SMA, RSI and a stochastic, then I stopped using the stochastic and stuck with the RSI, 50EMA and 200SMA
Then I threw away the RSI and now I’m stuck with the 50EMA and 200SMA. I’m not sure how much longer they will last but they help me keep kind of a grasp on what’s going on. (not about trend)

Ultimately I think you should try a lot of indicators and spend time researching them and understanding when they work and when they don’t work. It helped me figure a lot out.
It’s likely you’ll reduced down to just a few or 1 or none.
The education is great though.

I think it is also depend on your strategy. Some strategies need in indicators, some don’t. But definitely the can just confuse at the start.

Haha I have too many… Show photo is easiest n fastest. This is my trading platform. I love to hunt reverse tread. My ichimoku setting was teach by Lexys. Super useful… I’m stuck with it. Lol


Alanlim3 ,
Oh my gosh, it looks really scaring :slight_smile:

Nyad55,

So, is it really necessary to spend time researching bunch of indicators to realise, that you don`t need any of them?) Or this experince is useful anyway?

People vary.

To be fair, some people spend a lot if time researching a bunch of indicators and find one or two good ones that do help them.

“Different courses for different horses”, as the saying goes.

Again, it is for [I]some[/I] people; not for others.

I don’t use indicators now, but I still learnt some things from spending a long time learning about them, so I think the experience was at least “slightly useful” to me, anyway.

I think that most people who trade without indicators have learned to use them in the past.

Maybe some were unsuccessful and did better without them, with a different approach.

It seems to me that one hears more often about people switching from indicators to price action than the other way round. My guess is that most people who switch from indicators to price action [I]don’t[/I] switch back, but I might be wrong.

The “two approaches” are [B][U]not[/U][/B] mutually exclusive anyway. Many traders use indicators to determine an overall bias (for example, to identify trend) and then use price action for their entries and exits. This can [I]definitely[/I] be a successful approach.

Personally, I do better without indicators than I did with them, but there’s no “right and wrong”, with this issue. It’s about what works best [I]for you[/I].

The “two approaches” are [B][U]not[/U][/B] mutually exclusive anyway. Many traders use indicators to determine an overall bias (for example, to identify trend) and then use price action for their entries and exits. This can [I]definitely[/I] be a successful approach.[/QUOTE]

Yes agreed, I used to fully depending on indicator when I trade, when enter n exit also. But most of the time it turn out to be a bad trade. The indicator I have now is just for reference n over view. My main is ichimoku n Sar, when price is above ichimoku I look into sell, y i look into sell n not buy when price is above the cloud? Cos I’m hunting for price pullback. I hv try many many times, no matter how the price move it will pull back at certain point. How do I spot it? That where Sar come into the picture. When price touch the last Sar the last 2 Sar dot with form side by side. This mean the price strength is losing power. Pull back is coming. The nx candle the sar will b opps side. But b4 the opps side sar is form, and have to place my trade on the last sar. This is where the price action coming in in using heiken candle so price action is more easier to read than orginal Japanese candle, when the tail of the candle touch the sar n go higher, I will immediately place my trade on the last sar. Than u will see the price start to pull back slowly down. my tp depend on the price action itself. If strong I lg set the profit run for a while if not strong I close the trade mostly min is 5pips but I did set my tp is 15pips. Cos price pull back won’t last long unless it v strong tread. If not it will go back up again. After that I will reverse back use same method for the uptrend. Cos the price is above the cloud taking more pips is higher chance. Cos I’m Scalping.

By the way, can anyone teach mi how do I quote on only certain sentences only huh? I always do the wrong way… I when ever quote is the whole paragraph… Sad… LOL

What means “price action”?) It`s just a sinonym of trading without indicators?

That depends on individual trader, some traders read price action with help of indicator, and some only purely read price action on a naked chart without any indicator.

Price action is the movement of a candle. Swing high or low. Big body long tail or small body is some of the movement of price action. For orginal Japanese candle there r alot of price action form.

I am a recovering indicator junkie, jumping from one indicator to the next. looking for that perfect drug, I mean indicator. All these indicators ever did was give me false hope and a declining account balance. I am now 4 years indicator free, and a much more confident trader,

but like any recovering indicator addict, I am just one slick new indicator, promising quick rewards with no risk from going back to the dark side.

Did you manage this alone, or perhaps through rehab? I’ve heared it’s an expensive option if you don’t have the outside help from family and friends. I got into indicators at a young age too, by hanging around with the wrong people. More should be done to stop innocent newbie traders falling victim.

Maybe u can try on Sar. I did mention it in this tread. It v easy to spot reverse n pull back.