(sharing is caring)>>which indicators are you using?

Beginner Questions
74

[B]Back to Business, Mr Malik-[/B]

So let it be ----

For indicators I only use-

  1. LRC
  2. SHI

Sometimes I throw in CCI on 2nd panel

And then to confirm the trade, I use the Fib levels.

Works like a charm. Always.

Ironically I have taken best of the both worlds that appear to be at some kind of forex world war here. But my most frequesnt position is not to be in a position.

I used to trade once or twice a day, now I only place 2-3 trades a week-only when I see the channels and fib levels overlap…trust me that is a heck of a trade signal :smiley:

I would put pictures and charts but then that may not help much as that is very subjective; in other words may make sense only to me and appear non sense to others.

Now what do you use?

TEX

77

On non MT4 charting packages it is possible to create a dual overlaid CCI with parameter values of 14 and 34. That in itself is a really fun indicator. Combine that with a MACD and Parabolic SAR, and you have one of my charting layouts. But I play with a lot of things for different reasons at different times.

Good pippin,

Chubs

91

Hello Traders,

I don’t know who [B]mp6140 [/B]is! + i dont care if [B]tymen1 [/B]is the master of the universe and those [B]mp140 lawyers[/B] are about to kill the beast and save the world of pips from Missouri and disaster. All I want is [B]my thread back[/B]!

why don’t you start your own thread and call it ( mp6140 vs tymen: FIGHT ).

many thanks for others who contributed positively to my threat. im try’en my best to dig in and search for those useful ones. believe me its been a very boring job.

so please if there is an editor here or something who can talk to these people arguing about who should trade with candlesticks or if this mp140 should be unbanned!!! this is really not helping any newbie considering we are in the ([B][U][B]newbie’s island![/B][/U][/B]!!)

92

You are right [B]Malik[/B].
I will leave it alone and let the administration sort it out.

I agree you have had a rough start here!! :smiley:

I hope it gives you the resolve to be even more determined to be a good trader.

To finish, after that rude interuption by mp=che who should not be here because he is banned, some indicators for you and their uses.

[B]Bollinger bands [/B]- great for reversal trading and breakout trading.
[B]
Average True Range[/B] - great for stop loss application and position sizing.

[B]RSI[/B] - average indicator for reversals, breakouts, and trends.

[B]MACD [/B]- average indicator for trend trading.

[B]Directional movement ADX group[/B] - excellent for trend trading.

[B]Stochastic [/B]- ho hum for reversals, beakouts and trends.

[B]Rate of Change (ROC)[/B] - average for reversals, breakouts and trends.

[B]Moving average [/B]- average for trend trading.

[B]Guppy Multiple Moving Averages [/B]- excellent for trend trading. (highly recommended).

93

we apologize tremendously malik

for a decent discussion of indicators that work, you could take a look at the mp thread — appears a large number of people are finding these few indicators to cover the complete trading situation and give you tp points plus trend.

kinda neato

che

95

After reading through this thread and cleaning out the absolute ridiculousness, I have decided on a few things as it seems me that the flaming is getting more frequent and out of control.

If you have issues with another user, handle it privately and keep it off of the forums. This is a place to talk about Forex trading, and while debates ABOUT FOREX TRADING are okay and healthy, drawn out arguments and personal attacks/flaming is unacceptable. It is off topic, not conducive to a learning environment, and in violation of forum rules.

So from now on, regarding any drawn out arguments I see, especially if they get personal and are not about Forex Trading, all participants will be banned. Doesn’t matter who started it or what it was about. I don’t care. All parties are in violation of forum rules and disturbing the peace, and will be gone.

And to comment on the subject of banning users. We do what we feel is best for the community by trying to keep spammers, scammers, and disruptions off the forums. MP was offensive and it created a disturbance, and MP and myself have had several discussions where I politely asked him to watch his comments as they were offensive to others. This wasn’t possible, so I decided that BabyPips.com and MP should part ways as he continued to make offensive comments. I wished him well and that’s the end of the that… at least I hope it is.

My last comment is that I really do not understand the need to argue on an internet forum. Is there really not anything to do to make a better use of time like watching the markets, analyzing your performance, and learning new things to improve yourself?

Anyways, I just want this community to get back to a fun learning environment(and I’m sure I’m not the only one that feels this way), and if I have to be a babysitter, then so be it…

96

WELL SAID PIPCRAWLER,

and let us hope that history will show that this will hold true for everyone involved.

che

97

There does exist a [B]highly underused [/B]feature of just about every forum including this one which is called your [B]IGNORE list[/B]!

If you find someone offensive, just throw them on your personalized ignore list. Simple.

That way the few “whiners” don’t spoil it for the rest of us :mad:

98

Sorry to sort of go off on a tangent, but could someone please define the term “price action”. I know what price is and what action is, but I get the impression that the total expression is more than the sum of it’s 2 parts. It is refered to regularly, but I have never seen anyone define it or how it determines trgger points such as entries, exits, limits and stops. Sorry for being a dufus, but there may be other dufi who can also use some help with this piece of the foundation. I asked this question on another thread but it was closed before anyone responded. So again I apologise for sounding redundant, but again the words have appeared numerous times in many contexts and I was just hoping for a little clarification.

99

Not a problem jaguar. I saw you post it earlier which sent me on a google search to get a good definition of it for myself. I had an idea, but…

I found a good definition which I’ve quoted:

[B][I]Price action is essentially the closest relative to order flow in FX and across all markets. It is the direct result of order flow. Thus, it has the fingerprints of bias, speed of buying/selling, where buying and selling is occurring (support/resistance) when a breakout is genuine and where a likely reversal is occurring. From the continuous flow of price action which pours onto our charts, all indicators are born and thus dependent upon it. Hence, understanding and being able to interpret price action becomes an essential component to our trading. It is a way to get into the essence behind what creates the indicators and most technical signals in the markets. [/I][/B]

Now you may ask “What is Order Flow?”…lol…

Order flow is who is placing order, what kind of orders, how big…etc, but because Forex is not centralized, that kind of info rather absent.

Hope that helps and I’m sure there will be others adding more info.

:slight_smile:

100

Your response is certainly appreciated, Sweet Pip and this does get me down the road somewhat. But your definition leans towards the generation of indicators from price action. I wish I could quote, but my memory fails me. However, in the not too recent past, someone mentionned that they do all of their trading based upon price action, without any indicators whatsoever. That leads me to believe that there is a recognizable structure or pattern in “price action” which can generate the type of info that leads a trader to enter or exit. I’m wondering just exactly what the “price action” gurus are seeing?

101

Yes, there are patterns…lots of them…lol. Price Action creates them too.

The basics are horizontal lines drawn where price stops and changes direction. These horizontal lines indicate places of support or resistance. Other lines are more diagonal to indicate the direction of price as in a trend. Action around these lines are signals these kinds of traders look for as in Candlestick patterns morning/evening star, engulfing etc. or chart patterns like head & shoulders, triangles, 123 patterns etc. You’ll have to do your homework and go to the Alternate Technicals Template thread to get more info and guidance.

:slight_smile:

102

Thanks again Sweet Pip. I have looked at alot of this. I guess maybe I am just getting caught up in semantics.

103

Can’t resist jumping in here.

Traders generally use the term “price action” to mean price charts (candlestick charts, bar charts, or line charts, etc.) with or without “overlays”, but WITHOUT “indicators”.

Overlays are such things as horizontal support and resistance lines, trend lines, or channels drawn directly on the price charts to focus the eye on particular geometric patterns formed, and forming, on the charts.

Indicators are such things as moving averages, Bollinger Bands, stochastics, etc., which are derived by doing some number-crunching on the incoming price stream. The result of this number-crunching is graphically represented, and these graphs may be overlaid on the price charts, or may appear in separate windows whose vertical grid-lines align with the vertical grid-lines of the price chart. Overlaying an indicator directly on a price chart does not make it an “overlay” (as we use that term). Indicators and overlays are different things.

Back to the definition of “price action”. All traders use price charts, with or without overlays; so [B]to use or not to use indicators [/B]becomes the decision which “defines” a trader as a price-action (PA) trader, or an indicator (techie) trader. But this is largely a distinction without a difference, as they say. It’s like dividing all traders into two groups: those who pour steak-sauce on a good steak, and those who don’t. I happen to think there’s no better way to ruin a good steak. And, by thus insulting all the A-1 steak-sauce users out there, I could probably get a fight going between the two groups. And that fight would be about as stupid as the one which has been raging here between the PA traders (also known as naked traders) and the techies. For a great perspective on this topic, see tonymand’s thread titled “Price Action vs. Indicators: A Straw Man”.

Thanks for letting me jump in.

Clint

104

As we are all starting to learn, I HOPE, there is no war between two schools of thinking here. In fact, and please forgive me for this, I am actually starting to see the benefits of being a PA trader. It can actually produce a few extra pips due to getting in at the beginning of a move rather than waiting on indicator confirmation… who woulda thought I’d ever say that… :smiley:

So, to any that I have so rudely referred to in the past… please forgive me as I too am making personal discoveries about myself and the market. Picture keeps getting clearer. I am not ready to throw my indicators away yet, but wouldn’t it be nice to use them as confirmation of a trade rather than indication of a trade… Back to work and will continue to share my thoughts and learnings on this whole new great big world.

Thanks for accepting me for who I am and allowing me the room to grow and learn here at babypips. The more I learn, the more I love to share with others. Starting to feel like Neo. I know I’m not the one, but things seem to be bending… lol

Thanks to all, and Good pippin,

Chubs

105

In acknowledgement of Clints’s extremely fair and well observed post, I find the situation to be essentially what do you look at first ?

If you look at your indicators (overlays are MUCH better be they the ones mentioned by sweetpip or clint and which include the most famous one, the pivot point) first and then at the candle for additional confirmation, you are an “indicator” trader and if the opposite is true, you are a price action trader.

Both are valid means of executing trades. Those who do not understand indicators and claim them to be “late” do not fully understand how they work and are obviously depending on them for entries and exits when that is the job of the “overlays” . . . . . the indicators simply provide confirmation and indications of continued strength in movement.

Price action is a simpler form for those who like to remember patterns, but (IMO) do not give you the “looking into the future” ability that the indicators, teamed with the overlays will give you as to the strength and future price of the present move.

I stick with indicators simply because i feel i’m “following” a move if i rely on the candles, and i can “forcast” the move with the overlays and indicators and therefore accumulate more pips with less work, but, of course, that is what makes me comfortable.

Each works and each produces what we seek, which is profit. It is simply personal preferences and ability to use the tools that sets each trader apart from the next, with some traders being fabulous and others just mediocre.

insearchoftheflame.

106

Yeah, but you don’t really need to “look into the future” if you manage your positions correctly do you Mikey.

That’s quite a novel little alias you got going there by the way :slight_smile:

107

:slight_smile:

You�re absolutely right Chubs, there isn�t, & to my knowledge there never was until recent events took hold & caused discord everywhere.

As an example, there�s a fabulous little strategy on here that combines price action with [B]1 indicator [/B]confirmer.
If teamed alongside an awareness of basic support & resistance observation, it can offer a safe, & financially rewarding opportunity to those new to this environment whilst they get their bearings & increase their confidence.

http://forums.babypips.com/free-forex-trading-systems/1487-between-40-100-pips-per-day.html

It�s based around common sense principles that repeat consistently enough to ensure opportunities across a varied selection of currency pairs.

It can be traded in range as well as trend conditions, & dependant on the individuals preference, can be managed as an intraday or slightly longer-term vehicle.

No fancy bells & whistles, no razzle dazzle sizzle nonsense or chopping & changing across multi-timeframe charts to get your bearings etc � just a simple, basic set-up that if utilized correctly encourages good risk & odds participation.

It�s an ideal introduction for the novice/rookie & if required, there�s even a live room where I understand, additional tuition is available in case you want to confirm your views or get feedback on the layout etc.

And no, I don�t have any affiliation with it whatsoever, am not receiving commissions or introduction expenses, just in case any snide accusations are forthcoming :rolleyes:

The principle of the set-up is no secret to price action players, it�s used extensively across a selection of timeframes, it�s just James has put his own spin on it & presented it in a simple, easy to assimilate fashion. It’s not a fly-by-night get rich quick deal either, as evidenced by the length of time he’s been on the board & had his live room operational.

Anyone new to this business could do an awful lot worse than to go check it out & maybe use the structure to formulate their own take on the concept!

At least there are [B]some[/B] genuine opportunities out there for folks to browse, experiment with & get a feel for.

110

Joycelen, et al

In all things there is a progression and the simple system for newbs you describe is as hard as it should be at the beginning I should imagine, but one does not remain, like so many things including virginity, a new trader more than once. As one grows their knowledge and variety of methodologies grow also, at least hopefully, and the avenues available for exploitation become greater, year by year.

Understand please that this is my opinion, but while i firmly believe almost anyplace, assuming we are trading in the correct direction, may offer a decent entrance, the Exit of the trade carries far more importance.

Having stated my opinion on that situation, in the time I have been trading I have not yet seen a method of reading candles that provides sufficient warning when a very “toppy” condition exists, and so,[I]for myself[/I], I must use indicators that will show the strength of this situation and not a trailing stop to enable exits or a pivot point that might not be hit.

Using chart overlays such as the pivot points, support and resistance areas, price channels and a few forms of the bollinger bands, one can achieve tremendous foresight in movements within the forex markets, or at least as much as can be gained through technical analysis, although this information is not within the purvue of the relatively new trader for many years, which I freely admit to.

While the use of these tools is not so simple to place into words, I would guarantee that if we could either sit together, or at least connect our screens through some of those “go to meeting” type conditions, I could show you things that your expertise might marvel at as chubb is now marveling at candle patterns, since these tools provide not only extremely distinguished intraday trading results, but go further into the future than one is often comfortable in trusting.

I’m sorry Joycellen, but mere words are useless in this situation because the truth of what i say must be [I]seen[/I] in operation for any belief to occur and what I can show of what I believe in must also go for what you believe in.

I wish there were a way.

searching forever

111

Mike,

I don�t dispute or disbelieve the fact that you, or anyone else, are able to generate consistent profits utilizing an array of additional price aids (indicators).

As my sister mentioned way back in another post, the use of your angular channel configs (Shi Channel) are actually very productive & extremely helpful in assisting traders (new & older) with entries & the management of positional plays.

As you�ve said many times yourself, (& I strongly agree) utilizing these price aids in tandem with natural & oft recurring support-resistance zones makes for a high odds, lower risk opportunity.

It�s your constant chest thumping & unnecessary stick prodding/goading that one set of utensils is ultimately more productive & superior to another that gets folks backs up & spreads discord.

It�s not a contest of who has the biggest weapon (oooooo errrrrrr missus) or who can get from A to B the quickest with most pips.

It�s about executing as safely & appropriately (according to ones preferred method) as possible under the current trading conditions.

It�s not really necessary to grab the first bunch of pips or the last bunch of pips of a move. You�re not going to get a gold star if you fail to predict the exact pippage of a move to the last decimal digit. We�re traders not psychic market readers.

If that sort of thing works for you, then great � but don�t ridicule other players because we don�t share those ideals or views.

It�s all about nurturing an attitude of respect for the market, consistent discipline & understanding the surroundings so that you can navigate these markets next year & the year after, instead of blowing up next week on rash, ill conceived risk models.

Personally I (& Tessa) feel really sad that this site has plumbed the depths of recent weeks. I�m not suggesting it�s all your fault or our fault�.there has been a clash of wills or views & outlooks & the only losers are the guys who seek guidance & advice.

I really don�t know what else to say or do to be honest. I�m pretty much ambivalent to it all. I just want the site to return to it�s previous state where exchanges & views were shared & discussed in respectful tones, regardless of who traded where & why.

Ok, back to my boring paperwork & and a sly Jack Daniels (ssssshh, don�t tell sis) :wink: