I realize that all indicators are lagging, but I’m curious if some are quicker to react than others? And if so which which would be faster.Such as, would moving averages be quicker than technical indicators?
Price, volume, Support and Resistance are all current indicators.
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@rickoshay
in order to answer your question you need to understand how an indicator works
so let’s take a Moving Average (20 SMA based on Open) vs
as @Falstaff suggested… Price
well… the price indicator takes the current price, hence it’s instant more or less
the SMA relies on 20 Candles to form before it creates 1 Sample point or Plot point to represent the Average of the past 20 candles , hence there will be a delay
so you see how understanding what an indicator does… IS IMPORTANT
to make a long story short,
pick and indicator
google the name and find out what it does and how it calculates what it is doing
some indicators like Bollinger bands are more complex
they use a Moving average calculated over say… 15 candles (or whatever you choose) and BASED ON THAT they calculate Standard Deviations
so to understand this
you would need to know that there is Moving average being calculated and Deviations
so… go from here
so…
well. the ones that require less time and less calculation will be faster
Hi @rickoshay…Cool name BTW… Moving Averages are Technical Indicators…
Below is a chart that contains just one Indicator… The MA Coloured Slope Indicator… one glance and you know what the market is doing on the 1H time frame… no estimating crosses… working out a matching sets of periods.etc… etc…
If you want to sharpen it up a little… shorten the periods… it will give more false signals… lengthen the periods and it will give you a smoother look at the time frames sentiment…
Nice clean Chart that tells you instantly what the market sentiment is, and can be used on any particular pair in any particular TF…
Can be used as a SMA, EMA, WMA (best) or even as Wilder Smoothed WMA…
Its a great Overview Indicator for new traders, because you only have one parameter (periods) to adjust.
I think you don’t know how indicators work in forex business. Basically from the two set of price indicator take the current price and with pointing on some plots on candles than it represent the next step. So, it takes some time. So, whatever indicator use it will take some time to give you most accurate candlesticks. You couldn’t define whether moving average is better than technical indicator or not.