The reason I dont use any indicators

[Scataphagos]

Data is fact until it isn't...consider quantum physics.

You lost me. ??

 

[Grantx]

I don't have a "point of view". I was schooled in science. Data is fact.

Research the notion of "indicators vs correlations to market price".

Ok. Im going to google that and look into it.
Im going to educate you on my point of view. Youve heard of irreducible complexity? Well, if you remove everything from your chart you will get to a point where you are unable to go any further, all you will be left with is the raw data. Price. And as you say, Data is fact.
Price is the very bleeding edge. Nothing you put on your chart has a better chance at anticipating what is about to happen better than your brain. You with me? Your indicator might give you some signal that occasionally works but the pattern recognition software that is already built into your brain does a much better job.
btw, what indicators do yo use?

 

[speedo]

You lost me. ??

Matter/energy do not act so predictably at the sub-atomic level.

 

[Scataphagos]

Ok. Im going to google that and look into it.
Im going to educate you on my point of view. Youve heard of irreducible complexity? Well, if you remove everything from your chart you will get to a point where you are unable to go any further, all you will be left with is the raw data. Price. And as you say, Data is fact.
Price is the very bleeding edge. Nothing you put on your chart has a better chance at anticipating what is about to happen better than your brain. You with me? Your indicator might give you some signal that occasionally works but the pattern recognition software that is already built into your brain does a much better job.
btw, what indicators do yo use?

Doubt you're going to find much info from that Google search. Wasn't suggesting that search specifically, just the concept.

 

[Scataphagos]

Matter/energy do not act so predictably at the sub-atomic level.

Applicable?

Trading the market is all about understanding psychology and playing that with risk control.

 

[Grantx]

Matter/energy do not act so predictably at the sub-atomic level.

And the more you try to control it the more chaos you create! Entropy - third law of thermodynamics everything gets hotter!
Because price has random movements and our minds need to categorise and make sense of things, we attempt to control it and understand it by putting all sorts of indicators onto our charts. This has the opposite effect though and creates more confusion. (Scataphagos did say he was into science somewhere I think)

 

[Traderjohnsblog]

When did I say that?

Good point. I dont think he actually said that indicators don't work.

 

[Macca1]

How can you quantify your edge if you're only looking at candle sticks ?

 

[BONECRUSHER]

Indicators have tremendous predictive capabiities. What I have found is that folks who tell you that they don't, do not understand how to use them.

B1S2...I don't get it. On one hand you say "prudent risk management is the only true edge" and on the other you say "indicators have tremendous predictive capabilities". It sounds like you're saying indicators are a true edge too? Please clarify!

 

[El OchoCinco]

But there's a tendency in forum discussions for people to talk (at least to some extent) at cross purposes, because they mean different things by "work". I agree with your perspective on this, but some people mean "have directly predictive capabilities" when they say "work".

(To be fair, the word "predictive" also causes confusion in some of these discussions, partly because some people apparently confuse individual trades with a more collective statistical analysis and don't inherently or instinctively see "predictions", within our context, as probability-functions.)

I think even here the predictive capabilities are still within the person not the indicator. the indicator reflects information in the price and the trader looks for patterns or conclusions to make a determination of future price action. I don't believe indicators predict and many newbies fall down that path looking to trade a Harami or MA crossover or MACD nutsack. If A then B, easy peezy. But those of us who have made the move to the next level know it is not true, it is just mroe data to process and only WE make the "prediction" or trade. In fact I don't like to call it prediction because with good money management I can be right only 50% of the time. it is my skill that moves it away from a coin toss, not the indicator.

Hand me and a carpenter a hammer and nails, the hammer and nails works but my birdhouse will look like shit.