Indicators
- Thread starter Lizard5980
- Start date
There are no indicators that can be used to enter a trade setup correctly. Some indicators can be useful in helping you determine if price may be over bought or over sold during the day or night.
Then, by actually looking how price has been behaving over time based on your trading rules, you can hopefully see patterns that occur when price is say for example trending or ranging while keeping out of the market when it is behaving randomly.
Finally, by combining the above with reasonable risk vs reward and not revenge trading, you can achieve a higher win rate over time.
Also, just because you may believe for example price will go higher or lower, you don't want such a far away stop if you are wrong you are going to wipe out most of your gains made during the week.
Then, by actually looking how price has been behaving over time based on your trading rules, you can hopefully see patterns that occur when price is say for example trending or ranging while keeping out of the market when it is behaving randomly.
Finally, by combining the above with reasonable risk vs reward and not revenge trading, you can achieve a higher win rate over time.
Also, just because you may believe for example price will go higher or lower, you don't want such a far away stop if you are wrong you are going to wipe out most of your gains made during the week.
I have a respect for MACD and RSI (which I usually use as a "5" period).
Having said that, these algorithms were designed by math guys to take some of the "lumpiness" out of the markets you are looking at. For that reason, they hugely favor the longer term folks (swing traders), and not day traders.
Fact is, the most eye-opening revelations I seem to find are on charts 40 years plus.
And what is valuable in un-earthing these very long trends is that you can have the "wind at your back". There is nothing more discouraging that to keep hopping in and out of a long position, constantly at higher prices. And a higher tax rate as well.
My $.02
Having said that, these algorithms were designed by math guys to take some of the "lumpiness" out of the markets you are looking at. For that reason, they hugely favor the longer term folks (swing traders), and not day traders.
Fact is, the most eye-opening revelations I seem to find are on charts 40 years plus.
And what is valuable in un-earthing these very long trends is that you can have the "wind at your back". There is nothing more discouraging that to keep hopping in and out of a long position, constantly at higher prices. And a higher tax rate as well.
My $.02
Hey nyxtrader; how about sending me a zoom link?!
