Thread: Indiors for rookies

Ok then. This week I spended a lot of time researching about few indiors that I was interested on. I did this beginning determining a trading egy to the future.

The main idea is to talk about thed indiors we chose and talk about how in which they're working out for us.

In that direction I invite everyone on this great forum to participate.

Have trade and fun!

Originally Posted by ;

Learn Support Resistance, it will over the years do more for you than some other indior will.

So true! Support/Resistance is your tool that is technical that is fantastic! Within my live trading I always use daily S/R levels for differentiating the market tendency.

1. Levels of support and resistance
2. Alligator Bollinger MA (together with your own spans)
3. trendlines
4. Fractals
That's enough for me

Originally Posted by ;

Aren't indiors a kind of price action?

No; they are not.

Price action approaches are ways of trading with no dependency on indiors.

Originally Posted by ;

As far as I know, studying candlestick and discovering indiors in them is what price action is all about.

Apologies for the contentious tone, but this is in fact deeply mistaken.

Many price action traders do not use candlesticks whatsoever (as well as not using indiors).

And even among those who do, candlestick patterns are definitely not regarded indiors.

One of the main benefits of trading off indiors is they help you make more objective decisions. Rather than relying on pure price action where it's really hard to quantify what a head and shoulders would be, investing in a moving average cross gives you a set of transparent, explicit rules it's possible to backtest and then trade live.

Loing the relationships between indiors can be incredibly important. Trading off an RSI alone isn't going to work the majority of the moment but if you merely search for over-bought or even over-sold reversal signals in a volatile, choppy market (as defined by another indior), you can greatly increase your chances of success.

Finally, managing expectations is incredibly significant. If you can find a egy that is consistently 50% accurate with a 1:2 risk-to-reward ratio you're in fantastic shape! However, lots of inexperienced trades are searching for unrealistic returns and end up risking far too much per transaction.

I believe the indior that suits newbies is the MACD and moving averages. These are simple to find idea about price movement and reversal things.

Hello to all,
Yes, indiors play a very important role in helping the traders to comprehend the price action. Recognizing technical indiors for a newbie could take a lot of time. Being a newbie, I rely on MACD, EMA and RSI indior which makes me understand the price action at a better way.
One should even go for news, along with other economic events that would influence the price motion because every time technical indiors do not show a real picture. Clubbing technical indiors together with news/fundamentals would give a clearer picture.

Have a Fantastic afternoon!!

Forex Trading Indiors have been in use for ages. They don't work all the time, but they have been useful in most of the times and that's what matters. In FX, you can never be 100 percent, but what's necessary is that you get things right more often than you get them wrong.

Indiors rely on past statistical information about the particular asset. They tell what just happened, rather than what will happen and because most traders interpret them the exact same to attempt to predict another direction of their price, at time it ends up being correct because most traders left a similar decision predied on a similar source.

Originally Posted by ;

quote Agreed! Indiors can help trading but I think you shouldn't rely on them that much. Since indiors simply follows the price movement and it does not predict where the price will be going.

Unfortunately, nothing can predict in which the price is going. If we can, trading in forex wouldn't be so risky.

Originally Posted by ;

I am not bagging this thread thought, but only to be useful... Do what you have to men, but you and countless others take this indior route. So several chase for several years. REALLY years. (Some , if traded correctly CAN be profitable, don't get me wrong) The best indior is price. Where's it been? What did it do if it survive got there? Is the current transfer a replica of what happens most of the time at the exact situation? (I said MOST of the time. It's NEVER all.) Start reading from article 1 at the James16 Chart Thread (In interactive trading) . There...

Agreed!
Indiors will help trading but I think you should not rely on them much. Since indiors only follows the price movement and it doesn't predict where the price is moving.