Do Indicators work?

[phillo]

Well I guess we all have the ones we like, but which ones are they?   Here's an example

[Caseynotes]

Interesting, (there is a way to turn the indicator id on and off in Proreatime but I've forgotten how) so it's play the 'guess the indicator' on the 1 hour chart.

In the comparison pic below we can see it is MACD set at 24, 52,18 and on the price chart we have the 150 EMA. Both working fine though you can see why many simply use the 200 MA.

It is an important point though. A new indicator is test run with a wide range of settings and the one that comes out with the highest 'score' for backtested compatibility with price becomes the 'default' settings. The important point is that the test runs are nearly always done on the Daily chart and that may not necessarily be the best settings for the particular time frame you are using. It always pays to experiment.

 

[Nelsy-Boy]

Indicators are helpful for confirmations. I have found that different ones suit different time frames. I have also learnt that they are produced from data of previous price action and so can only be used as a guide for future movements based on mathematical equations.  I think all of the technical graphs you have provided in other posts have been excellent Elle. 

[Caseynotes]

No need to guess this one, it is a averages crossover ribbon type indicator Taotra written by Mladen, can be on price or in separate window. Many adjustments available so can be as fast or slow as required.

Current setting is; start period 3, method exponential, step period 2, and number of averages 20, and colour coded for fast, middle and slow.

Visually very effective at conveying a lot of info quickly. Direction, trend, momentum, force, speed.