I don’t like indicators on my candles, but I will use a lower indicator such as Stochastic RSI to detect divergence.
How do you detect divergence with this or see the real price action? Seems like this would obscure price even more than a lower indicator.
Real price action obscures a clear view of where the market is going…
The RSI is labelled as on Overbought / Oversold Indicator… Those that have traded this feature have been left wanting as it can run along the 70/80 or 30/20 levels for prolonged periods of any particular time frame.
The only truly reliable Indication from this Indicator is strength and weakness… Hence it’s name Relative Strength Indicator… RSI above the 50 (Strong) or the RSI below the 50 (Weak)…
If you study the Candles (above and below) you’ll see above the 50 are Green and below the 50 are Red. If you were to open positions at the change of signal you’d have a few small losses and a few big wins…
It’s that simple… This gives clean easy signals for the change in trend of price action.
Even on the latest (No cherry picked sections) GBPUSD 4 hour Chart it would have you on the right side of the market enough to be profitable.
So it only changes the color of the candles not the formation. That is interesting
The MACD indicator is my absolute fave for trading! It’s like having a GPS for trends and momentum. Plus, it’s a signal powerhouse, offering a variety of trade signals. While I am exploring some new indicators, I’ll definitely share my insights once I’ve got a firm grip on them.
In my opinion having solid proce action and support/demand zones knowledge is way more important and using indicators like EMA is like last resort
Most successful would be probably a combination of MACD, RSI and Pivot Points.
Most enjoyable to play and poke around with Heikin-Ashi and Ichimoku.
If I had to pick a favorite indicator, it would be EMA (Exponential Moving Average). It’s my go-to tool for spotting trends, measure the strength, and make trading decisions.
For me it’s EMA (Exponential Moving Avarage) cause it helps me clear out situation in the market and secount would be ATR (Avarage True Range) cause it helps me with setting my stop loss in more accurate positions
My favourite so far is multiple timeframe fractals. I use them to trade reversals at key levels. If a key level is broken its no longer a reversal but a continuation. I can still trade those. I’ve added a 24 period MA and the Alligator indicator for visuals to spot trends and consolidation quickly. A 20 period MA would still work instead of the 24 but the 24 is my preference. I can see why RSI is useful especially the RSI 9. I believe price action is king so I look for candle patterns at the key levels as well.
The ATR because it helps me assess market volatility and set precise stop-loss levels, enhancing my risk management strategies.
I assume that I can’t go without MAs, whatever the form is.
And I see that dozens of people out there indicate the same.
Plus, I don’t mind using some oscillators like stochastic, for instance, as well as I don’t neglect using RSI which perfectly goes with all I mentioned above.
Here you add volumes analysis and then you can do weighted decisions.
However, again, it’s better to check everything twice and spend twice more time on the demo than rushing, thinking that you are able to conquer the market. Usually, nothing good occurs in this case, so watch out, pals.
I agree with you!