Are all those methods really important?

Beginner Questions
1

Stochastic, Fibbonacci… what do the pros really use to trade?

2

I’m not a pro but I use only MA’s on daily charts. I sometimes look at weekly charts to differentiate between the consistency of trends relative to the 50EMA. Price is the best indicator of price.

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3

I’m not a pro either so I can’t speak for them. Some of us use naked charts, some use indicators, some use chart patterns etc. Use whatever works for you. That’s the beauty of trading. It allows for creative approaches.

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4

Every trader trades differently. The important thing is to understand the concepts behind Stochastic and Fibonacci and then determining whether applying the tool to your specific trading approach makes sense.

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5

First of all it is necessary to understand that all indicators are just tools that could be used as an additional source of information. Would they be useful for you or not - it all depends on particular trading system you are going to use. If you enter the position according to the signals provided by indicators or use them to get additional confirmation for various price action setups they would be very helpful, but if you are interested mostly in fundamental analysis you will use them just to understant the general situation in the instrument.

Despite the fact that all indicators are lagging? the main advantage of all systems based on indicators is that they could be easily tested on historical data to find out their profit potential, which is quite impossible with discretional strategies based solely on fundamental analysis. Nowadays there are special tools for backtesting like Forex Tester, that help trader to get all necessary information just in a few minutes. For example, Fibonacci levels could be very useful to make assumtions on profit potential since they quite often match with important levels. At the same time, traders looking for trend reversal often use Fibonacci levels to identify the price zones where the trend could probably change its direction.

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6

Makes sense, will read about it MA’s

7

Great feedback. Will read about those methods to better understand it.

8

And that is exactly the worst thing to do. Its the worst form of use of indicators. Its the worst form of trading. Its the best formular to make your account go to 0 as soon as possible.