If you could have just one indicator, which would it be?

[kut2k2]

The "why" isn't all that difficult. Price rises as long as buyers are willing to pay the ask. It falls when sellers have to lower the ask in order to complete trades.

That's it.

True but the kid's point is that it's hard to wrap that up in an indicator. My point is that it's not necessary and may be a distraction.

 

[londonkid]

The "why" isn't all that difficult. Price rises as long as buyers are willing to pay the ask. It falls when sellers have to lower the ask in order to complete trades.

That's it.

I would classify what you have written as a microstructure explanation of the 'how'.

 

[dbphoenix]

True but the kid's point is that it's hard to wrap that up in an indicator. My point is that it's not necessary and may be a distraction.

That depends. Many traders use indicators because they can't tell up from down. However, those who want to automate their strategies have no other choice.

 

[londonkid]

My point is that it's not necessary and may be a distraction.

I agree it is not necessary but any level of understanding into the 'why' is superior to the 'how' imo. A good counter argument could be made to say that studying the how is more of a distraction than the 'why'.

 

[Johno1]

Havnt used an indicator for years unless you counts fibs. As a failed scientist the 'why' (price moves) bothers me and no indicator helped me with that. I dont believe it is absolutely necessary to know why but for me it was.

My real time P&L, apart from that naked price action. I couldn't care less why, but generally, I usually find out the why after the major moves as does everyone else when it is of no use to us.
Cheers John

 

[Xela]

If I had to choose one specific indicator, to the exclusion of all others, I'd probably take the Kijun Sen line from the Ichimoku Kinko Hyo set of indicators, because I've found it of helpful and practicable use in deciding when to close trend-following trades, and it's derived from objective highs and lows rather than from interpretative opens and closes, which I prefer in principle (and the Kumo indicator would probably be my second choice, because I've often found that a convenient and relatively reliable way of projecting forward a display of recent zones of support and resistance).