What is the most overrated indicator?

Moving averages are great. Fibonacci I don’t like I think it doesn’t always work and because that, I think overrated.

What do you think is the most overrated indicator?

Pls, no "I don’t use indicators’. I ask from those who use them.


Perhaps you just don’t understand how to use it and that’s why you think it is overrated.




They are all overrated because they are used without proper understanding how and why they should work. They can be auxiliary, not primary tool, but many traders prefer to trade on “signals” - when some indicators flashes red, reaches 70 or some too simplified stuff which of course can’t work.


Each one what works best for him, after testing and analyzing his strategy on at least 50 trades.

For me everything is unnecessary, I prefer to trade supply and demand



Most “over-rated” can maybe be identified objectively -

  • well known
  • very complex
  • little used
  • narrow application
  • has not been developed into a simpler more user-friendly version
  • has followers who resemble a religious cult in their devotion

Two candidates come to mind -

  • Elliott Waves
  • Ichimoku

Normally indicators are used in tandem with your strategy, most don’t stand strong on their own. I like Fib & MA to give me an idea where others might be setting stops or entering trades.

Indicators are never and will never be overrated. They are very important for you chart and price related actions, so how can you say that they are overrated?

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I say that Elliott Waves and Ichimoku are over-rated for the reasons I have set out.

In short all, but with that said the holly grail is most over rated as all chase and never find. Get to know a single indicator and it will become a great dance partner

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this is true. you don’t think it is overrated ?

I personally believe that it isn’t overrated

Stochastic oscillator. Has a massive fan base out there among the pros but personally I consider it a momentous sack of sh!t.

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Then what will you say about stochastic and moving averages? Underrated???

RSI. Every newbie has an RSI on their chart.


Lol. The only reason a person believes an indicator is over-rated is because they dont understand it and the ways you can use it. This includes me too. The indicators that didnt work for me eg bollinger bands, I think they are overrated but this is purely subjective. It’s not something which I would advise others as they might be able to use them.

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Not really. Stochastics and MA’s are over-rated if they are used to generate entry signals with less regard to price, but that’s not really a criticism of indicators, more of the traders who abuse them as a kind of short-cut. But they are real and useful indicators based on price statistics.

Well, it all depends on the context of the word overrated. If you were to point one indicator to be overrated as you say, the question would be “what is its rating compared to which one?” Your question is so generalized such that it is not answerable. You personally think Fib is overrated? What is its rating compared to which indicators? How much is it supposed to be rated, and based on what?

No I don’t think it is overrated. It is amazing how many times price will bounce of the 50% or 61.8% fib and how many times you will get a reversal at the 130% level.



I’m of the same opinion with Fib levels… It maybe a self fulfilling prophecy, price bounces, consolidates or reverses at Fibonacci Levels far to often to be coincidence…

EURUSD 1 Hour Chart (Current) 50% - 23.6%… Like all S&R theories… it’s all about the zones…

PSAR (Parabolic Stop and Reverse) is overrated, only way to profit from this shocker is change the settings or trade it in reverse…

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Fibs have always puzzled me.

The way I see them is that price always has to retrace somewhere and with so many fib ratios you will always get price retracing close to one of them.

So my question is does price retrace to the exact level of the fib? And also do you just enter a trade here or is some type of price action needed as the final criteria?