There are so many indicators, but how do you know how to use them?

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi all

I’ve been researching on indicators for the past month and I’m ready to do some backtesting

As far as I know regarding indicators

  1. You should use 2 MAX 3 indicators
  2. You should have a Trend indicator / Confirmation Indicator
  3. You should have a Volume indicator / Volatility indicator
    Then
  4. You should have a Exit Indicator

And you should backtest these indicators and make sure they work well

My problem is I’m not too sure how to use some indicators

As far as I know some indicators give you a Long and Short signal on the chart which makes things easy

Zero cross indicators when it goes above the zero it’s long if it’s below it’s short

But there are some indicators that don’t have guides on when to long or when to short … and that’s where I get confused. Or am I getting something wrong here ?

2

An indicator has to earn its place on your screen.

It must answer a question for which your strategy MUST have an answer, and the question must be one which the price chart alone cannot answer.

They are not entry signals.

3

Hi, check this lessons in BP about indicators. Regards Greg

4

The best indicator is price , then look to have 1 to find trend and 1 for trigger but keep simple ie 1 indicator on the chart ie a EMA and 1 below ie a RSI , keeps the chart clean and easy to read

6

@tohno

I think the series of indicators you are on about are used in the NNFX strategy. Look up NNFX on youtube, all the videos explain it.

7

Hi mate

If you are new, then I’d highly recommend ditching all indicators.

REMOVE ALL Indicators…

Use the price itself… Remember all the indicators are formed from the price… However they lag by the time they are presented to you.

So what to do.
Plot key levels, s/r from higher times… Do top down analysis.

Identify structure, e.g trending down on 4h. (LH, LL)
You can draw simple trendine as directional bias.

Use fibs tool to predict retracements for entries… Usually 62, 70 or 79 are good levels for entries.

U’ll be amazed with the simplicity… And sometimes accuracy.

Another easy strategy is to look for what price does at following times… Mark these and wait to see reaction when prices hit this point again.
ASIA HIGH /LOW
LONDON H/L
DAILY H/L

Usually what happens is when price approaches yesterdays high/low it will do a quick bounce to give Atleast 10 pips. So 10 pip sl and 10 pip tp…

You might be lucky and catch upto 100 pips a in a week just with this…

Do some backtesting.

Get rid of the indicators.

If you want to really learn, then here’s an excellent course… It’s free available on you tube… It is super comprehend boring… It’s very simple it’s just the guy takes too long to explain.

Inner circle trading
Ict… Went series 1 to 5.
Ict snipers scout series
Ict… He has a few more just go through them

Hope this helps you all.

You can email me for more info if interested…

[email protected]

8

Your saying is that you are only shaded indicators and trend line drawing much better to enter trades?

9

Draw

S/R… Weekly, daily, 4h
Trend lines weekly, 4h
Look for opportunities in 1h times

Use fibbonacci retracement tool to enter.

You can email me for more information I’ll send you some examples if ur interested.

Regards

Naeem
[email protected]

10

I sent you an email