Are indicators a waste

[thetradinggod]

I began by trading overbought and oversold RSI readings that formed at Daily Support or Resistance levels with the trend.

I did this profitably for a while then I removed the RSI and continued to be profitable…

[greenscorpio]

absolutely i just done ok on a jap/usa, i dont mind night trading sometimes, no comments from Trump usually the trend seems more deliberate and less spiky well less volatile maybe . I quite like early days of the week too in the London session to catch a few ranges before 2.30think that form of trading very simplistic but can be profitable too

[greenscorpio]

good point

[Blackduck]

There are only advantages to learning PA and no disadvantages

Spot on. Price action is what is happenning in the here and now. My trading went to another level when I decided to trade more with Price Action and less with indicators.

You have made a great point.

Cheers

Blackduck

[Blackduck]

Yes indeed, “Price Action” has inevitably become market hype and jargon used particularly by product sellers by playing on its sexiness rather than its real value (which indeed it does have) and by perpetuating deceptive understandings that other approaches are intrinsically wrong whilst ignoring the true reasons why retail traders still lose money whatever they try (as so many have confessed to here on BP).

PA gurus cannot even agree on what PA includes!!! Just like the religious factions in the world.

I fully agree with you that indicators in general are not ideally suited to forex, but not because of some phantom excuse that they are “lagging” - of course they are lagging -so it PA. In fact indicators can be considered_less_ lagging than PA because they even include the current price in their calculation.

I actually thought that you were a creditable trader but after reading this I have to question that belief. So how do you trade?? What indicators do you use??

I am first to say that I am purely a price action trader and after studying both Bob Volman and Al Brooks I can honesty say that Price Action is the only way to trade.

Whatever markets you trade they are nothing more than a place for traders to buy and sell. Nothing more nothing less. Price Action is exactly what happens when buyers and sellers do business. Everytime that price goes up or down irrespective of timeframe someone bought and someone sold. That is it!! Each time a bar or candle forms on the chart is because someone bought and someone sold. Understanding price action gives you the edge on knowing who is doing what and why.

Over bought over sold indicators trend strength indicators EMAs are all lagging and have their place for some traders. However not this little black duck.

The only two indicators I believe are worth while are momentum indicator and a volume indicator. Both designed to measure the commitment of traders.

Happy Trading

Blackduck

[Trendswithbenefits]

The Technical Analysis Fallacy… will be an interesting read for some…

“Technical Analysis can work in some market conditions all the time, all market conditions some of the time, but not all market conditions all of the time.”

[Glopips]

In my own view, understanding the price action is the ultimate in trading forex while indicators can be a guide in some conditions.

[CavaliereVerde]

I think with “price action” people mean candlestick patterns like inside bar, morning star evening star…
If you backtest a simple stategy with only those patterns it will not work, just like if you backtest a strategy that uses only RSI or only 2 moving averages.

What is the Best Technical Indicator in Forex?

Candlestick patterns or single indicators wil not work, they are components of a system that has to be simple but not too much.
Tipically we need 2 or 3 conditions to generate a profitable strategy.
Too few conditions and it does not make pips , too many conditions and you have an useless overfit.
This stuff is explained in every good book of algorithmic trading.