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Technical indicators are lagging


Guest oilfxpro

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Guest oilfxpro

I don't use indicators in my trading, these indicators are lagging, and they provide information too late to be profitable.I have made many custom indicators almost 150 of them, so I know all about indicators.

 

https://community.ig.com/t5/General-Trading-Strategy/Technical-indicators/m-p/2404#M291

 

 I get information from simple trend lines, channels and support/resistance by looking at 4 hour and daily charts, and behavior of related instruments .An example of this is Dax and ftse have to give similar confirmations on both charts  of subjective behavior patterns.I like  all US indices to be positive to place a trade on ftse  /dow or dax .None of this value added information I see , beauty is in the eye of the beholder, can be put into reliable accurate indicators.

 

Indicators rely on market timing, if market timing is difficult, then indicators are impossible to make money from.

Indicators based on Price action rely on timing the markets , but this has been proven to be too difficult for most , according to this article below and free google searches .

http://www.trade2win.com/boards/educational-resources/221422-what-happens-when-you-try-time-market.html

 

 

 

Indicators rely on being reality with the markets , and this article on t2w examines why traders are not in reality with the markets.The psychology section on this site explains :

 

http://www.trade2win.com/boards/educational-resources/222992-your-brain-wasnt-built-handle-reality.html

 

 

Using indicators will create a lot of psychological issues, that most new traders are not aware of.Indicator users are taught by non traders, who are not successful at  trading and don't know how to really get an edge in trading.There are many people who gain, when you lose, so they would rather influence  you how to use indicators  and lose money.The forex bucket shops make money,if traders lose.

 

One of the reasons why traders fail is ,they are taught to use lagging indicators, that fail to give timely signals.

 

http://besttradingforums.blogspot.co.uk/2017/10/95-of-traders-lose-below-confirms-this.html

 

Keep trading simple stupid.Don't allow failure of indicators to arouse "the enemy within".

 

https://profitabletraders.wordpress.com/k-i-s-s-keep-trading-simple-stupid/

 

Here are simple set ups using trend lines, support and resistance ,that make money more than 50% of the time, if market correlations are applied.

 

BULLISH TREND LINE.jpga

 

keep it simple stupid like the chart below

ftse price action 2.jpg

 

support trades 

 

ftse entry.jpg

 

support trading on ftse 

 

https://community.ig.com/t5/Indices-and-Macro-Events/FTSE-SYSTEM/m-p/18475#M1849

 

 

ftse.jpg

 

 

failed indicator trades

 

FAILED.jpg

 

 

 

 

 

 

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Of course trendlines and support and resistance levels are indicators that lag most of all because they are actually static. The most important feature in an indicator is that many traders use/see it, when they act on what they see then what is indicated becomes a self fulfilled prophecy. See the 1 hour bars on the dax chart yesterday, they were clearly reacting to the 100 MA, they even follow the curve and note the power of the bull bar needed to break through. Big players were looking at it and reacting to it.

 

Where people run into trouble is when they pick out some obscure pattern from within the noise and against the run of play that no one else can see or is even looking for and then desperately search for some kind of indication to back up the bias. That's when indicators, be they static or dynamic don't work.   

 

 

snap.png

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Guest oilfxpro

Nice to see I G don't teach  indicator usage, but they provide them in their charting packages.

 

https://www.ig.com/uk/ig-academy/the-basics-of-technical-analysis/moving-averages

 

Support and resistance levels are indicators that don't lag ,they are true areas of supply /demand, with overshoots in increased volatility.A support area is an area of demand, where investors are currently  willing to buy.

 

 

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