Is it true there are no such things like the best indicator. There is not a single indicator that is better than any other or that can guarantee my profits! What is the purpose of each indicator? What they serve and how to use them correctly? Indicator types how many of them? How much can I learn?
Have you done the "Pipschool " ?
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No, I have not done yet. Should I?
If you’re new - absolutely essential !
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I agree with you! BabyPips School is the best course for the new Forex traders!
I like Alligator with moving averages. though i’m not a pro, but it works great in the majority of times
Indicators in my opinion are just used to confirm how you think price will move, never make decisions from them. I use bollinger bands every time, never goes away for me.
I like Moving Average and RSI! Although, I am a news trader but these 2 indicators help me to get swing points of market.
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The best indicator is the one you can read and the one that provides you, as an individual, with good trading signals. Which indicator that would be exactly tends to be very subjective.
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I am reading and learning now from BabyPips school. However, I am asking here because I can get many points of views through one question. How you guys treat or see forex trading from your own side. This makes me feel excited. It is way more interesting than I thought but for sure it is a long process which makes me feel bored sometimes.
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Hello, @Luke_Ronchi can you put some details here. How do you do it!!! So, I can learn things from you. Thank you so much for your response. I hope you will reply soon.
Your word hit me good. It should be this way. What I can read and the one that provides me. It depends or varies person to person. I think I need to find out which is tends to be very subjective.
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People often underestimate how subjective trading can be - strategies, indicators, time frames, they all differ from person to person. One should be willing to test and experiment until they find what they need.
You are on the right way! All of the best.
Oh and MACD. Study the MACD, it’s movements, and it’ll become your favorite indicator
Everything is subjective here in trading. And all subjects vary from person to person. Whose gonna willing to test and experiment every subject until they find the right one? It is really hard. Don’t know how to deal with it.
There is probably no such thing as a single indicator that will give you 100% guarenteed profits all the time, reliably ever day. Also many will state that to use indicators only is not reliable, but price action is the main ‘indicator’ of when to buy and sell.
The main places to learn the indicators is through the babypips school, various free lessons by the brokers. I used the free webinar courses from XM and Forextime. Another free information source is Wikipedia.
I would recommend Moving averages to start with for basic analysis. It is the most common and easiest to understand.
For example; I will use daily moving averages (MAs) of 55 and 200 periods. These give me a very good idea of a trend direction and if there is a trend. For example, currently the MAs are pointing to an up trend in the EURUSD. Should I buy now? No, I need further confirmations. Another tool I use is the ADX. It confirms if there is a trend. Currently it is below 25 (on the daily chart), so I am not trading (In fact the ADX is trendless / ranging for all the majors I trade, therefore I am out of the market / not trading).
So far I am being shown that the EURUSD in in an upwards trend, but that the trend has stopped. Now I wait for confirmation of a new trend before I trade again. Another tool I use is the RSI. If it is in overbought or oversold territory it can warn me of a potential change in direction. Recently it warned of highs at around 1.2 on the EURUSD, this was an excellent time to take profit. Currently it was high and is heading down.
In summary, some indicators indicate when a trend is in action or not, some point in the direction to trade. Other swill warn you when the market is about to turn. Thinking in this rough way, we could look for indicators when a market is about to turn, then look for when a trend is about to begin and finally trade in the direction of the trend when all the indicators line up properly. This is just a rough idea of the potential logic of one way to use different indicators together.
As an example, currently I am not trading as I an getting ranging readings on the daily charts for EURUSD (and other majors). So I wait for other indications that the market has started moving or trending again. There are some indications from the RSI and ADX that when a trend resumes it will be of a weakening EURUSD position.
This is one small example of how I use the technical indicators. There are others I use too, such as the Ichimoku Cloud, Stochastics and basic trend analysis. There are various other techniques I use to actually trigger trades and exit trades when the technical indicators give me the background of what is happening in the markets.
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Anyone who wants to become steadily profitable.
The other people all make up the statistics by becoming part of the 97% who don’t, and eventually drop out, and there’s a huge turnover of them in the markets.
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Price action pure and simple. Learn this and lagging indicators can stay in the box. Best time for this is 4.30am GYM ready for Frankfurt and London opens. Majority of days you will be done by 10am GYM.