How to explain indicators to dummies, also what’s a good one to use ?.
Well there no one that wins all the time. Bollinger bands, SMA . RSI are some of the ones used the most. Personal i like using the 20,40,80 SMA on the same chart. When the 20 crosses over the 40 it tends to signal it is going higher. and when it goes below it tends to go lower.
Indicator= A trading tool that uses price along with a combination of other variables in order to create a visual representation of current market direction and conditions
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Hi, the indicators work on the basis of mathematical calculations of historical price data (from time to time you can find discrepancies in the chart between the price and the indicator).
Which indicator is good? it depends on the current market situation, e.g. today RSI will be a good indicator but next year it may turn out that the combination of Keltner channel and parabolic SAR will get better results.
The main thing is to use indicators to find a statistical advantage on the market. Combined with good money management, you can achieve a positive return on investment. Regards, Greg
Indicators are useful for telling you whether you should be looking for buy signals or looking for sell signals. The signals come from price. Even more important, the right indicator for your strategy will also tell you when you should be waiting and not looking for any signals.
Indicators are helpful but not essential. If you need to use an indicator, use only one. The chosen indicator should tell you something that price does not and knowing this must be essential to your trade decisions.
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Like what boss?
I now only use a couple of EMA’s, no off-chart indicators. I’m almost certainly not the best person to recommend a specific indicator. However, the strategy should drive the choice of indicator, and there will be only one optimum indicator that suits it.
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I totally agree with the answer that @tommor gave.
The most important information that you get from the market is on the chart, although indicators can be really helpful in your trading.
Some indicators may highlight what you struggle to see on a plain chart. Some indicators can generate signals that you can evaluate on your chart. Some indicators can be helpful to build a trading strategy.
If you want to have a look at some indicators, how to use them and how to build a trading strategy with them, I have a series on YouTube about indicators.
This is one on the RSI: YouTube
Today, a very very interesting one about the MACD will be published.
Please, don’t expect that they will automatically make money for you. It’s full of material online, but the real work comes from you.
Learn, practice, back-test. Keep learning, keep practicing, keep back-testing 
Thank you @tommor
I don’t know if I’m doing it right. I have a strategy I’m still testing and I use one optimum indictor that tells me when to trail my stop. Is this what you meant by choosing an indicator that tell you something that price does not?
You added extra goodies to my first question and thanks for that. But what I really meant was what sort of information(s) could that one optimum indicator tell you that price won’t. Is trail stop part of it? If not, I’m doing it the wrong way.
You have a strategy - is it working? If its working without an indicator, you don’t need one.
If its not working, or not producing enough profits, you need to answer the question why. The answer will identify if you need an indicator and what sort of indicator you would need to make the strategy work.
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