Too many indicators

Trading Systems
1

So im swing trading but i cant seem to find the right set of indicators to place a trade. I find myself using Stoch, RSI, EMA, SAR and MACD all on one chart and find its nearly impossible to get all indicators suggesting the same entry. They contradict everyday. Not sure if i should not use certain indicators but this is really frustrating. Im wondering if there was any advice on which mix of indicators works best for others? Thanks

2

That’s not how it works.

Each and every indicator can be used with success. However, nobody can tell you which indicators work for you. Forex is about pattern recognition. Use the indicators that help you see the patterns. Ditch the rest.

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3

When using a lot of indicators you can be confused since they may indicate opposite signals. The price is the main thing but not indicators

4

dont mix them you need one , or two if you really need it

5

Mate, do this

  1. The problem is you are inundated with indicators.

  2. STOP NOW… remove your indicators

  3. start drawing support and resistance lines

  4. No doubt you will no need confluence (of course)

  5. keep reading

Pick the indicator that you thought was best, Pick only 1
now decide on which direction you think the price will go in

NOW TEST YOUR INDICATOR, do this on Demo, and see if the indicator gives you the right indication of direction (at least most of the time).
if it doesn’t , get rid of it and try another one

you have to figure out what combination works for you, No one can really tell you what to use.
it’s like making coffee

i will have a flat white with 3 Sugars
now. you might say, that’s too sweet, i would disagree and say that FOR ME, it’s perfect

you might also like a flat white, but with froth, i don’t like froth, i like it flat.
Everyone has their own sweet spot
FINDING YOURS IS A JOURNEY and you can’t ask someone “What’s at the end of the road” before you get there,
because walking the path is a learning experience that makes you a better trader later on

Just keep experimenting and don’t bog yourself down with a million indies… ok
be cool

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6

Good advice from Drekieyja, as always.

And understand, also, that in order to use the indicators that help you to see the patterns, you have to START by knowing what the patterns are, that you’re looking for. There’s not much point in starting off by looking at the indicators and seeing what they do - that’s really putting the cart before the horse and can lead only to confusion and an excess of indicators without understanding how to interpret what they’re showing you.

Respectfully, I don’t agree with this advice. It can be a very good idea, especially for beginners, to mix them in such a way that you have a combination of indicators that show different things (for example one moving-average-based indicator with one that isn’t, or perhaps one momentum-based oscillating indicator with a trend-following one). But again, you need to know why, and which patterns you’re trying to recognise FIRST, to do this.

7

So can you please suggest the mix of actual Indicators that you would use for Swing Trading on say a 4 hour chart, or even perhaps suggest the best TF and Indicator mix for a successful Swing Trading Strategy?

8

Use one indicator, two at most and learn to read candlestick patterns as confirmation. Tie this in with a moving average (my preference is 50 and 200) then trade with the trend. No indicator will give you 100% winners, but combine this with good money management (1% of your account and 2:1 risk to reward) and self discipline and you should become profitable.

It’s so much easier in print! :innocent:

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9

Our respectfully disagreeing poster is a little short on actual detail.

Below is a brief video overview of a simple Swing Trading setup, even hindsight situations (dead charts) are covered in this strategy example…

Other examples of Swing Trading can be found all over Youtube, where varying strategies and ideas are actually provided. After watching and sifting through a lot of the examples you find, you should be able to start to formulate and demo your own Swing Trading strategy.

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10

Yes - some time over the Christmas holiday, when I have more time, I’ll come back to the thread and write a longer response answering both your questions above.