Should we use the same indicators for everything?

[i am nobody]

Yes, because you can use them in reverse when they fail, that really is the secret to using indicators properly. There's gold in failures.

Most people lose money, so if the would reverse trade they would make money?????

If that would be true , everybody would be rich. Your statement is too simplistic. You should analyze why they lost. Timing can be wrong although they had the good direction. So stopped out before the trade took off. That’s just one sample. If you would reverse that trade you would lose money too as the original trade had the right direction. Maybe even lose more.

All indicators are good and all of them can be used to effectively make money even something as simple as a single 7 day moving average.

If that’s true I would like to know why most people lose?


Abbot, did your drink too much ale?

 

[vk60546]

...

(I do use TA, for all my trading: I just don't use indicators.)

Hey, can you tell me an example of the use of TA without indicators? You can use a hypotethical example that does not necessarily work in real world to give me some idea. Thanks.

 

[AbbotAle]

Nobody, I said the reason they lose is because they don't take YEARS to visually study their indicator of choice and fully understand the nuances of it, its subtleties, where it's strong, where it's weak, what happens before and after failures, what happens before the indicator works and so on.

I maintain that anyone could take a simple 7 day moving average and just study what price does when the moving average gets caught up in chop and how price breaks free from that chop, and make better than average returns with very limited risk. Will it work every time? Of course not, many times price will break free from that chop without the trader getting a good signal, but if he's patient and knows what he's looking for, beautiful trades will set up.

But they'd have to study thousands and thousands of examples taking many years before they could see the clarity of the indicator and make it work. Who has the time and patience to do that when potentially going for many years of making nothing? Very few.

Never forget the advice the great Bruce Lee gave us all - I don't fear the man who's practiced 10,000 kicks, I fear the man who's practiced one kick, 10,000 times. No different in my opinion to using an indicator, fear the man who's studied 10,000 times when a 7 day moving average gets caught in chop and breaks free. He's very dangerous if you take the other side of his trades...

 

[AbbotAle]

Hey, can you tell me an example of the use of TA without indicators? You can use a hypotethical example that does not necessarily work in real world to give me some idea. Thanks.

Friday's 8am-2pm (London time, 4 hours diff. remember) on the Dow futures.

First they tempt them in, nice higher flow, everything looking great. Then they smash them out with thrust, then boom, back off to new highs. No indicators needed, just understand who's getting fucked and then look to buy into the subsequent strength (if it materialises) which it did.

 

[Handle123]

Humans usually find something that interests them and they will spend all there time learning about what interests them. I started with learning how to chart and when home PCs came out I added indicators, threw away most and settled on MACD, RSI, moving averages and volume. As years went by, at least for day trading, got rid of RSI and MACD as I just know when price is slowing down but added Bollinger Bands, just a quicker way for me to see tight markets and I discontinue trading till markets expand. But most of my signals are still chart patterns based and I learned how to chart by hand, so I never use candles.

Except for ES and maybe NQ, I use indicators same in all markets, each market has it's own personality so it has little differences that need to be learned but basically same. Like I can trade one minute NQ but prefer two minute.

People lose money for various reasons, mostly they are not ready to compete against the best, it is like a five year old playing basketball against a seven footer, people think it is a even playing field, it is not, MOST are BAIT and the few are WHALES, Whale doesn't have to attack any of the bait, whale just opens his mouth and swims. Some of the brightest people come to the markets thinking their brain will overcome experience, I certainly can't bend microwaves, but I know the probabilities of swing distance of ES in first hour of ES. And there are differences when it comes to bending microwaves, YOU are working for someone and I work for myself. So when you leave your element of safety of working for others and now all alone trying to compete against the best, YOU are getting added stress where as stress for people like me is normal day. "They" are concerned over few hundred elements of trading and I am concerned over my cat having hayfever.

 

[lawrence-lugar]

The short answer is no.
Each scenario in trading is different and dynamic and somewhat complex

You have to consider the goals, timeframe, risk tolerance, etc etc variables of the trader or investor
Each trading instrument behaves differently; what makes it tick and move...its heartbeat and behavior or mood.

 

[Xela]

Hey, can you tell me an example of the use of TA without indicators?

Support and resistance are a pretty important and major part of technical analysis, but clearly not in themselves indicators.

 

[K-Pia]

In such threads, people sometimes use the terms "TA" and "indicators" as if they were interchangeable, which of course they're not: there's plenty of "TA" that has nothing to do with "indicators" at all.

Yes, my mistake that you pointed out.
I was talking about indicators, but used the term TA.
Was a bit tired when I answered but I concur, it's not synonymous.

 

[Redneck]

Could we use the same indicators for everything?

Yes

each market has it's own personality so it has little differences that need to be learned but basically same.

=======================

And before someone chimes in with - I thought you didn't use indicators

Never said I couldn't - said I don't (purely a preference)


Besides..., at a point.., how one gets there is all academic

RN

 

[speedo]

Hey, can you tell me an example of the use of TA without indicators? You can use a hypotethical example that does not necessarily work in real world to give me some idea. Thanks.

By simply using price bars to discern patterns and using intra bar dynamics to gauge momentum. I use studies but have friends who do very well without them.