Please if anyone can offer some clarity, on a point in the pipsology school
In the section on oscillators/momentum=leading/lagging indicators,
leading indicators were for example: Stochastic, Parabolic SAR, and RSI
lagging indicators: MACD, MA
and in the section on making your own trading system it says the opposite, it said that you should use MA, MACD to find a new trend, and stochastic, RSI to confirm a trend
So my question is, shouldn’t I use the leading indicators/oscillators to find a new trend, and the lagging indicators to confirm a trend?
All the above mentioned indicators are pretty hopeless and lag to some degree. RSI tends to work best in a range, SAR tends to identify the strength of a trend, Stochastic is similar to RSI MACD is only useful in divergence or confirming a possible change in direction but you are better off trading MA’s i.e. price moves above the 50 or 200 EMA is a buy signal. Tend to be solid R and S levels.
Don’t waste your time with indicators focus on volume and Price action and self fulfilling Fibonacci to look for retracements and take profit levels, it may also help you see a trend forming rather see it when it at its end. Study some Elliot waves tends to go hand in hand with fib.
I don’t want to confuse you more, because with practice and time, you’ll will see this for yourself; all indicators are based on past price and sometimes can be used in different ways. For example a MACD can help you find the trend, it can also be used to help you with entries and exits. As you learn more and gain more experience from your demo account hopefully, your thoughts and uses for indicators will change and a lot of confusion you have now will go away. So for now, Use your MA and MACD to find your trend and your stochastic, rsi, etc to confirm it. Keep trying to learn, your A HA moment is right around the corner
Gp