Do We Need Indicators?

[El OchoCinco]

Clever, but this ignores the validity of my price structure analyses. I don't much care if you're making money off of me, I'm sure a lot folks are, I only care that I'm making money.

This is the basic point that fails for many traders here, who gives a fuq what other people use, as long as you make money. Validation from other traders is just a sign of poor trading skills since your account is the only validation needed. I think most people post here because they need to constantly have someone tickling the teabags to feel better about themselves rather than just be happy making money.

 

[speedo]

What 85 said.

 

[FreakofNature]

Best way to use indicators is to learn how the herd uses them, and exploit their ignorance when the pain begins to hit their accounts. Try it.

 

[murray t turtle]

Do you NEED indicators? Absolutely not. Not anymore than you need a tachometer or speedometer to drive a car. They are just instruments to give information on momentum just like many indicators give information on market momentum. Trading can be done well with them and well without them and certainly the converse is true.....People trade poorly with them and poorly without them. Having said that I choose to use indicators because it speeds up my analysis of markets. I can see what is happening and has happened much faster (10-20 seconds or less) than I can looking at price alone, but that's just how I trade.

%%
Good pointsEga9; but IBD[Investors Business Daily like$ 200 dma [like$ 50 dma /200 dma] Besides= school zone speed limits[20mph/+] are enforced rather well LOL[200dma overlines or underlines price]===========================================================Thanks

 

[SunTrader]

I think an indicator needs to be developed to decipher Murray T's posts.

 

[SunTrader]

TD Combo Aggressive caught the reversal

:

 

[murray t turtle]

I think an indicator needs to be developed to decipher Murray T's posts.

%%
Hint,ST ;study enough 200 dma=200 day moving averages.

 

[carl0215]

Do We Need Indicators? Or does price already show us everything we need to know?

https://dl.dropboxusercontent.com/u/143105519/Indicator%202....

On this chart: Keltner bands, Wave Volume, Volume, MACD.

Consider price structure and MACD A to B. Looking at price, at A there is a breakdown from a top consolidation, a H&S, then from A to B a nice, steady downtrend. Drilling in on the MACD, from A to C it is sharply down to significant lows, confirmation; from C to D MACD remains below the 0-line but is mostly flat, divergence. Now, considering price, we can see the same momentum structure from which the MACD is calculated: From A to C there are much wider spreads down overall than from C to D and A/C goes much deeper in the channel (trend) than does C/D, a more shallow swing that stays in the upper-channel on those narrow spreads. MACD is, here, in a sense, redundant.

From D to B, another nice price downswing, MACD remains pretty much flat with a very slight downward bias, a divergence. Which can also be seen clearly in the price action: From D and at E are deep reactions (in context) up, affecting downward momentum; then at B a wide spread with a long lower tail closing nearer the high. Note again here how the downtrend stays in the upper-half of the channel from C-ish to B.

But I still like MACD on this setting, because it shows me an overall glimpse of what price is doing piece-by-piece. In a sense, it's redundant, but from another perspective, it shows the obvious more obviously.

Now consider Wave Volume. C/D we see high, possibly climatic swing volume, however note, again, the relatively narrow spreads. There is no climatic price action, bar-wise. But, interestingly, D/B there is higher individual volume while wave volume declines. So I think Wave Volume is unique and useful as an indicator, at least vs individual volume. Price does indeed move in waves and this indicator may show us something about the force of the move that may be not evident in price action or corresponding bar volume.

Keltner Bands. Looking at the A/B downtrend consider the bands vs the drawn channel, which is initially drawn A/F/G. Note how accurate the channel is, with price staying (almost every close) in the parallel upper-channel from G-ish to the breakout following B, that low at major long-term S/R (purple line) and the close sitting on that mid-line. The trend channel shows strength in the weakness of the downtrend. Conversely, the Keltner Band shows another scenario - weakness in the weakness - as price rides the lower half of the band with resistance at the middle MA, confirming the downtrend. B springs the outer-band.

So I think the Keltner Bands may be useful as they give a perspective that may not show up through drawn channels alone. (Possibly this is simply because it's a longer timeframe?) I'm not sure yet.

No, you do not need indicators. If you can't look at a chart and spot where you should place trades keep looking!

 

[SunTrader]

%%
Hint,ST ;study enough 200 dma=200 day moving averages.

Try again, in English please.

 

[murray t turtle]

Try again, in English please.

%%
200 days moving average[200 DMA] is a line , trend line measuring 200 days worth of TREND. Pull up a 2 year candle chart chart of Target[ ticker TGT] Most all of the prices are down, 200 days moving average is down. Good question, SunTrader about 200 DMA. I made grade ''A'' in English, most all the time.