Best indicators ?????????????
- Thread starter Humpy
- Start date
Quote from RCG Trader:
It is incumbent to the traders development that they develop their own strategies and use due diligence. As this is a market place for ideas, caveat emptor, of course.
Thank u for offering
Couldn't help but respond once more.....
There maybe millions of strategies but there is nothing new under the sun in trading. No one knows the future, you can only bet and control your risk. Once you realize this no amount of derivatives of price is going to help you gauge what is happening now.
Your best friend in trading is your analysis and whether you start with indicators or without them, if trading is your true passion, you will end in the same place.
Trading what is happening now.....
Ignorance is no excuse for not using indicators.
The only thing ignorant was this saying
I use it MMindicator
I disagree.
Going from eighths to pennies was something very new under the sun.
Electronic trading, very new under the sun.
Volatility, while not new under sun, changed the game for many traders.
Trading is not always what is happening now. Because on some days a big fat nothing is happening now.
While I agree that price is king, like any new endeavor, stages and milestones have to be built. So, while indicators may crowd your screen, the less experienced trader may more easily see that double top, or the rollover in momentum, which always leads price.
Some of the best posts are the first to be posted in a thread!
Price and Volume are perfectly incorruptible. Once a trade is executed . . . it's history . . . period.
That being said any chart that isn't primarily based and grounded in Price/Volume ONLY, not time is inherently flawed or born with a major disadvantage.
EXAMPLE of using multiple indicators to any chart:
Indicator #1 - Potential 75% accuracy
add
Indicator #2 - Potential 75% accuracy
(now the combined accuracy drops to 56.25%)
add
Indicator #3 - Potential 75% accuracy
(now the combined accuracy drops to 42.1875%)
add
Indicator #4 - Potential 75% accuracy
(now the combined accuracy drops to 31.640625%)
Go ahead . . . keep adding indicators if you want to continue to lose money.
Now we all know that the accuracy of ANY indicator, on average, is far less than 75% but I used that to make an extremely "rose colored" point. Now look at using a better example of just 60%.
Indicator #1 - Potential 60% accuracy
add
Indicator #2 - Potential 60% accuracy
(now the combined accuracy drops to 36%)
add
Indicator #3 - Potential 60% accuracy
(now the combined accuracy drops to 21.6%)
add
Indicator #4 - Potential 60% accuracy
(now the combined accuracy drops to 12.96%)
It is no wonder that 95% of traders fail.
Starting with a chart that isn't based in Price/Volume and then adding multiple indicators . . . you might as well donate your money to the market directly and then go fishing.
But.......
Don't u use a momentum based indicator to confirm that price has taken a certain direction?
Yes, I use Price/Volume based charts with a single indicator to confirm the creation of price oscillations.
I use a single indicator for the exact reason I stated earlier and the accuracy of that indicator is in direct relation to the accuracy of the oscillations created on the charting I use. I would NEVER use multiple different indicators on a chart . . . EVER!!!