S&P 500
Remember we all said this is a useless retail indicator 
- to which I also agree [find what fits on bloomberg, seems the usual way when analysing movements in hindsight]
RSI DIVERGENCE…this was the hot topic in Babpypips many years back, oh the good old days. Maybe we can attach a Fib level and an OTE too, ICT can come back and say how he took this trade
ICT dude must have been real popular huh. I continue to see a ton of ICT references in this forum.
Also, n00b here: what do you mean when you say you’re surprised to see this indicator being used on Bloomberg? Is it because they should know better than using it? Sorry you have to break it down!
He was indeed, and for all the wrong reasons - which most of the members here learned “after the fact”. He was a great salesman, he still remains one on Twitter too with his paid subscriptions seemingly buoyant. I believe he managed to wrap up basic trading tactics in his own unique language and therefore made it sound like some sort of “new and easy to follow grail”…The truth is that he traded in hindsight, always did his analysis after the fact and blew up his first public account here in BP in spectacular style after running a thread with what I remember to have over 100,000 posts. In fact, as far as I remember his public account here didn’t even come close to mid two digit returns.
There’s some brilliant Twitter accounts from advanced traders & traders who call out scams who actually have ICT as their pinned tweets. He’s quite the laughing stock of the retail trading community and continues to pedal his useless rebranded rubbish.
Looking back, a RSI can indeed be used to leverage up decisions and analysis in indices and stocks. This was the reason why the RSI became popular. It was built around asset classes that had a positive overall expectancy (i.e. they appreciate over time, and are not generally fixed between an overall range like that of major FX pairs). However, trying to use RSI as a driver for trading decisions in Spot FX is like trying to drive a car in reverse down a one way street - it just doesn’t work…most of the time.
For my part-absolutely not useless, on the contrary, RSI is a kind of leading “direction guard” because compared with other similar indicators RSI is a little bit “stronger”. So if the other indicator says " we are going straight up" and RSI say “yes but not now” than the up move has very low chances to happen.(or to last longer then some seconds) This helps me to filter out the “low propability” moves. Also if the other indicators seem to reach an oversold/overbought area and RSI also heads in the same direction but is farer away from beeing oversold/overbought, i made the experience that price has still some potential to head in the direction. (I should mention that i talk abot M1 and M5 charts).
Damn. Must have been a sight to see back when it happened. Do you know how much that account was worth? (Although props to him for letting it be known that he blew it up though! Unless of course, that was not intentional.)
That’s interesting. For some reason I thought he was a well-respected persona in the industry and just thought babypips too beginner for him!
So in this case, Bloomberg using RSI for S&P 500 isn’t too bad yes? But if I for instance were to use it, then it’d be a problem. Did I get that right?
You mentioned Fib level also, is that something you think is more apt for equities?
Yea, I don’t actually know any traders who trade the 1 minute or 5 minute timeframe who use any indicators other from classical TA and volume analysis / ladder trading on the old fashioned depth of market analysis.
He couldn’t actually afford to fund it in the first instance - I think it took a few months for him to deposit the funds. He then had significant drawdown and made out that he intentionally decided to do just that - to prove that he could dig himself out of a hole…needless to say what happened?
Well, he was in the right place to learn with the BP school haha
Yea, I was heavy handed with my post title. It can be used to some benefit on indices and stocks - personal preference on FX suggests that I’d leave it alone. There’s overbought or oversold regions within the RSI and then there’s really overbought and oversold regions, then there’s really really overbought and oversold regions and then there’s…well you get my point, right?
I’m yet to see a FX trader who speaks highly of the RSI, or MACD in this instance. But, we’ve all been there and tried it out.
Fib levels are a funny one, there’s as many examples of them working as there is examples of them not working which isn’t a great opening statement. But, I do think there are some key levels that seem to hold some substance when using Fib levels in ranging FX markets. But, this then brings us back to the dilemma of how do you define a ranging market and how do you define where a Fib extension should be drawn from correctly. Personally, I think Fibs can be used in FX as part of the overall picture although you have to be exceptionally clear how and when you use them.
Lol. Just for kicks, I checked him out on Twitter. Looks like he’s pretty big there. Lots of engagement and he has what looks like his own tools and forums too. Wonder how many folks from here he took with him.
Anyhoo…
Interesting. I’ve always thought these two were go-to indicators for most forex traders.
This is always my question haha. With anything I do with charts! It’s all so darn subjective.
Thanks for sharing all your thoughts! Appreciate that you took the time to answer my questions!
I think to sum all of this up, most successful retail FX traders will use no “off chart” indicators at all. All the information they desire is already printed in the price chart. Admittedly some do use “on chart” indicators, as do I, but this in my view is far more useful as it is overlaid on price itself.
Either way, it’s really important to avoid analysis paralysis, too many indicators and you’ll do more harm than good. It’s also worthwhile remembering that all indicators are just a derivative of price itself of which you already have in its purest form right in front of you!!
Candles. That is all I need.
Yea I had my fingers on the stopwatch wondering when you’d chime in 
You know how much I love indicators 
True, about as much as I love all these magical & majestic candlestick patterns 
Candles… It’s just price my friend. The only thing we really need to speculate.
IMHO of course
You’re absolutely right - I was looking for the Blue Unicorn pattern today, no such luck. Gutted I was!
Only pro’s can spot that one. For $99 per month I can teach you the pattern. 101% win rate, guarunteed.
That’s a fair deal actually, does it work with Binary options too on the one minute chart?
You will make so many millions you won’t even need to think about binaries.
omg omg OMG - where do I sign up. Wait, I must phone the wife first.
PM me 
