What is the most reliable indicators to use with candlesticks, as they reverse on a dime and moving averages doesn’t seem to fit? Or am I wrong?
The most accurate and timely indicator is price itself.
Price directions can indeed reverse very unexpectedly, but its more common for trends to continue than reverse, after that its more common for them to stall and then continue than reverse.
There are lots of price behaviours also such as chart patterns, supply/demand zones (I’m just learning about these), support/resistance levels which can indicate a higher than normal probability of trend reversal. You can (should) always keep an eye on the major pairs featuring currencies you’re long/short in - it would be unusual to see EUR/USD reversing from bullish to bearish and not see the same pretty quickly afterwards in EUR/ZAR for example.
Is this going in the right direction?
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Thank you @tommor, While I agree with you wholeheartedly, I have seen some great trading opportunities using the Fakey pattern. I have lost lots of money in the past by trying to predict tops/bottoms, and trading against the trend, and not employing solid stop loss management. This pattern seems to have a high success rate The EUR/USD just did the same pattern in the last hour. it happens when the oscilators are overbought/ sold, then an inside candle, then a break in the direction of the trend ,and then a break in the opposite direction. I am attaching a chart where this scenario unfolded, and then the Euro rallied quite a bt, or rather the dollar weakened. Seems interesting, because the stoploss is so close. The Euro broke upwards at 1.1188 and there she goes!
I see what you’re talking about, but I posted recently I regard all intra-day TA as just noise anyway. I would have to bow the greater experience of day-traders who might be able to shed some more rational light on this than I could.
Tommor, thank you for your time, much appreciated!
Don’t use indicator. It lag… By the time the indicator confirm the trade…the price already shoot to nowhere… Beside price action itself, u can add in ichimoku cloud with combined of SAR. This both is overlay with the price itself, not an indicator. It move with the price telling u what the movement of the current price now.
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I have the same idea, indicators just lag price because price determines the indicators. But I will look at RSI 7 median price, and if there is a hook, I will trade it! Thank for the inpu@t Alanlim!
Your most welcome sir. If u using rsi, maybe can add in Sar. It b some help to u. When price is near to Sar mean it going to pull back or reversed. But mostly pull back will b around 4 to 50pips b4 it continues it journey
Thank you again Alanlim3, I will do some studies of your method.
No problem sir. There be surprised for you when u put it on real time test. Just don’t back test. Cos back test is always perfect.may God be with us
The Ichimoku cloud is an indicator.
The fact that indicators lag isn’t necessarily a reason not to use them. Indicators can be helpful without trying to use them to confirm the trade.
Ichimoku is an overlay not indicator
Anything when place on the chart n it goes with the price is call overlay.
Bb is overlay, Ichi overlay, Sar overlay, ema, sma, wma all is overlay.
Adx,atr,bop,cci,macd,roc,momen,rsi. It’s indicator cos it place in another column below the price chart
Erm… Just thinking… Please correct mi if I’m wrong, If without trying to use them as confirm trade, what help can it use? Just to know the price is going up or down? If that the case just use one 50 ema will do. Don’t waste space open a indicator. Confirm the trade or trigger the trade I think is using price action itself play a part of it. Am I right to say that?
I wonder where you’ve heard this, Alan? It’s wrong.
Think about it. The classic example of an indicator is the moving average. Everyone agrees that that’s an indicator, and that’s on the price-chart, not in a separate panel below it.
Many indicators are displayed with the price.
Overlays are a type of indicator-display, not something different from indicators.
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Thanks Quikly! You are absolutely right!
I heard it from oanda. So I’m wrong… Means oanda is wrong too… Even the platform is set this way… Sad… But it still better than those macd or rsi. It go with the price action. Try Sar u will kn the difference. Maybe Sar is dif cos it place ontop n below the price.
When I think back. If it call indicator n not overlay means… Oanda this broker company is wrong… Such a big company make this mistake? Or maybe it people always get the wrong ideal? Ema is call moving average, people call it indicator cos more easy to remember? I really don’t know about this thing already… So complicated lol
If Oanda are telling you that moving averages (for example) are “not indicators” because they’re displayed on the same panel as the price, then you can see for yourself that they’re wrong.
All they’re really saying is that for the purposes of the nomenclature they choose to use for classifying and labelling on their charts, they’re using different definitions from all the rest of the trading world. I suggest that you shouldn’t let their decision to do that lead you to believe that oscillators are indicators and Ichimoku isn’t, because that’s obviously very, very wrong.
Cool got it. Thanks quickly