I am new here and would like to seek your advise on GBP/JPY direction for today.
I’m using ichimoku, DMI, ADR and MACD as my guide.
And most of the indicators pointed to a down direction for GBP/JPY. WHats your take on this? Coz the price seems to be edging upwards more than downwards.
Indicators are lagging. It shows history record and not current price movement. It was retraced higher yesterday and it looks like price will move higher to retest at level of 184.860. Wait for price structure at this level. Safe trading.:5:
Indicators are lagging.
Price on a chart is lagging.
Whats the point?
Everything we as retail traders have access to, to trade, is going to be a derivative of some other piece of data (indicator - movement in price, movement in price - orders filled).
Yes, indicators are lagging in pure definition.
But, not all indicators are lagging in application.
For example- lane divergence w/ Stochastics. This is not a lagging indication of price- it is forward looking.
While most indicators may be lagging it does not mean that they can’t be used. Those who figure out how to use them properly can find them beneficial. You would be surprised what some people come up with, but as long as it works who cares?
You’ll be better off if you research the topic on your own.
Tons of free videos on youtube explaining the strategy in depth.
Basically, you’re looking for price to be doing one thing, and, the indicator to be doing the opposite.
For example- in a downtrend, you see price make a low and a new lower low.
But, the stochastics indicator is making a low, followed by a higher low.
Before you study up on any strategy, do yourself a favor and learn EXACTLY how the indicator works. Learn how the data is calculated. Eventually, you’ll come to learn that the indicator is just a “quick” way for newer traders (and those w/ less time) to spot setups.
STOCH just plots a line and an average of that line in conjunction with candle closes over the previous x periods. So, if you’re “looking back” 15 periods (your range), and all the closes are consecutively higher, and near the top of the 15 period range, stoch will be traveling from oversold to overbought levels.
When a market is trading sideways, your stoch indicator will be all over the place.
Look up John Kurisko- he has the best (from what I’ve seen) strategies for STOCH.
Pretty basic stuff- in an uptrend, you’re looking for a bull flag within an ascending channel, and an oversold stoch to get long.