I have been studying these indicators stuff for 48 hours now I don’t seem to understand. Please help me out
48 hours… That’s not nearly enough time.
Let me give you an example.
I studied forex and read various information for about 9-12 months. I opened a demo account for a full year after that and then made a live account which still couldn’t factor in my emotions in the live market (got it under check as I progressed). What I’m basically saying is you can’t rush these things and there are so many different indicators that you haven’t even heard of or even come across yet. Also indicators mean nothing without a strategy and you shouldn’t be heavily reliant on indicators especially if you don’t understand them. Also indicators are like a hammer in a traders box, it’s helpful but there are plenty of other tools used in conjunction together that help you build up what you’re trying to accomplish.
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Thanks
Please can you share with me the indicators I should concentrate on for now?
It’d be hard to say because I don’t know what you’re trying to accomplish.
Are you trying to make a certain amount of pips?
Are you trying to make a certain amount of money?
Are you a scalper, day trader, or a long term player?
What type of pairs are you looking at majors or exotics?
What is your actual strategy or do you not have one yet?
Indicators also should be viewed with a grain of salt. If everyone just needed to follow indicators to be successful we’d all be rich right now. What you’re not factoring in is that indicators are some times lagging/ahead of the curve. You can easily get the correct signal or be easily faked out via indicators. Just cause an indicator predicts a “change” is coming it might not happen exactly at that time or not at all. You also have to factor in the markets move off more than just indicators, you have market sentiment, you have fundamental (news, gdp, cpi, pmi, nfp, and etc). You can’t just solely use indicators and expect to be a profitable beast there are more things you need to factor into your technique.
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My opinion, Don’t! Haha.
Learn basic support and resistance, price action and study trading psychology. Understand that risk management is much more important than many beginners comprehend.
But yes, if you are looking to have an indicator based system 48 hours is really no time at all. I do have a friend that trades indicators and he took 2 years putting together and refining (backtesting ETC) his system.
Best of luck!
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First of all it i important to understand that depending on your particular trading system you would either need indicators or not. Some of the traders do not use indicators at all while other traders build their systems entirely on the basis on indicators.
If you want to try them to find out whether they would be useful or not, try to start with main indicators like Moving Averages, RSI, MACD and other. You can easily find tons of information about them on the Internet including books, blog, articles. As for me, there are very interesting articles on strategy-based indicators here (Indicators page). Some of the might be a bit difficult to understand for the newbie, but they are very detailed and accurate.
You can also search for the book called something like “Encyclopedia of technical indicators”, since it contains brief descriptions of almost all existing indicators.
Start with price presented as candlesticks. Recognise uptrends and downtrends, then pull-backs, flags and pennants. Add a medium-term indicator like 20 or 50 if - and only if - you need to in order to better picture what price is doing.
After that a very simple strategy will become obvious but the principles on indicators remain - they are not compulsory - only add one to your charts if it tells you something you absolutely must know but which you cannot already see.
That sounds like something yoda would say!!
Sometimes getting back to basics is the way to go!
Price goes up and down. Even when it’s going sideways it’s still going up and down… just not as much.
Keep it simple!
KC
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Well, I have been eating Buddhist Pizza - one with everything…
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That is VERY funny!!
KC
edit… Still laughing!
Only you can decide which indicator to focus on. First you have to study what each indicator stands for and how they can help with analysis. I will use the Momentum Indicator as a case study here. There are many resources on babypips here. But here is a detailed article I came across How To Use Momentum Indicator Forex? | FX Indicators
i hope it helps
dude, just study price action, that s the core, most indicators are lagging, and… ofc u can use for confluence or as a confirmation, but u need to know price action, areas of support, resistance. dinamic lvls etc… and if u ll allow me, try and study volume(as an indicator) in conjunction with price action, that will help u a lot with entries, fake moves, knowing when there s activity and where, prepositioning etc… hope this helps. cheers