Indicators/Oscillators

I started trading in 2002 and then I tried using indicators such as MACD, Stochastics, RSI etc..... I put them aside as I always saw conflicting signals so in general never helped my trading.

However I am being lured into using them again. For those who use them in their trading which ones work best and also do they work best long term (i.e daily charts) or are they just as efficient on 5 min and 15 min charts?

Would be grateful for responses.

thnx

I am currently testing a trading plan which will use Smooth Stochastics crossover as an entry into a long or short position on the condition that other indicators (purposely vague) are behaving in a specific and identical manner (purposely vague again!). I've so far found that if these indicators are not conflicting with each other you get good entry signals. If they conflict, you don't trade.

So far, I've found that this plan works best in a trending market.

Naturally, I annotate the price chart with S/R level(s), trend line(s), Fib and two MA's.

I use one other indicator to manage the position with an eye on the price chart and on above indicators. Any negative developments and the position is closed. All indicator settings are not mainstream.

I don't use MACD.

I am intending to trade on a daily chart basis then moving to 1 hr charts should I be successful.

Hope this helps

DDI said:

I started trading in 2002 and then I tried using indicators such as MACD, Stochastics, RSI etc..... I put them aside as I always saw conflicting signals so in general never helped my trading.

However I am being lured into using them again. For those who use them in their trading which ones work best and also do they work best long term (i.e daily charts) or are they just as efficient on 5 min and 15 min charts?

Would be grateful for responses.

thnx

Click to expand...

Hi DDI,

May I ask why you feel "lured into using them again."

You almost sound reluctant to get back to them !


Thanks

Damian

DDI said:

I started trading in 2002 and then I tried using indicators such as MACD, Stochastics, RSI etc..... I put them aside as I always saw conflicting signals so in general never helped my trading.

However I am being lured into using them again. For those who use them in their trading which ones work best and also do they work best long term (i.e daily charts) or are they just as efficient on 5 min and 15 min charts?

Would be grateful for responses.

thnx

Click to expand...

i just did my chart lines on big charts and came up with 1426,1416,1407-8 ,1401,1379 on spus,12475-80,12400.12360,and12250 0n dow---the day trade usually turns on these numbers,the easiest trades are the first hour,and u just watch the momentum,we are possibly rolling over ,so to be nimble and flat here is good,the stochastics and waves are good indicators,just avoid having an opinion..which is what they give u

Thanks guys for your input,

Dear Damian,

I got lured as I saw some presentations and historical charts on how these indicators gave good signals. In general I only trade binaries and didnt really go after trading actual underlying markets. Am thinking on trading markets now too.

DDI said:

I got lured as I saw some presentations and historical charts on how these indicators gave good signals. .

Click to expand...

Be careful, it's fair to say that most indicators will give good signals at some point, the question is how consistently they provide good signals, i.e over years of performance not just a snapshot of a particular timeframe to make the presentation impressive.

DDI said:

Thanks guys for your input,

Dear Damian,

I got lured as I saw some presentations and historical charts on how these indicators gave good signals. In general I only trade binaries and didnt really go after trading actual underlying markets. Am thinking on trading markets now too.

Click to expand...

Hi DDI,

In my view, you are better off trading in the real market as opposed to someone else's version of an underlying price.

Like the above post says however, be aware that many seminars and presentations only tend to show indicators and chart patterns in instances when they worked well. Always remember that indicators are just a tool and not necessarily an accurate method of price prediction.


Thanks

Damian

"I got lured as I saw some presentations and historical charts on how these indicators gave good signals"

The easiest thing in the world is to selectively show hindsight charts where a particular indicator works . In practice you will inevitably find that 'successful' signals are market structure dependant. However , if you do not know why your indicator works you will be more inclined to take all signals blindly. After a period of doing that there's a pretty good chance you'll come to the conclusion that the indicator ,perhaps all indicators , are useless. However , that is not the case, it is only the 'blind' use of them that makes them useless. Not the tool ,but the hand upon the tool.

macd/BB

try a slow macd (9,30,1) as an oscilator (above/below zero) with fast stochastics, on various time frames.. add classic bb (not brigitte bardot), and there...i believe they work great on a non trending day

chump said:

. After a period of doing that there's a pretty good chance you'll come to the conclusion that the indicator ,perhaps all indicators , are useless. However , that is not the case, it is only the 'blind' use of them that makes them useless. Not the tool ,but the hand upon the tool.

Click to expand...

can you recommend something whereby not being blind using indicators?

i often hear that indicator are useless infact professional traders said it too

is it true?

I use a range of indicators, oscillators, I won't trade without them, they have served me well for 10 years now. get them right, they can prove an invaulable tool to get you into the trade at the right time and more importantly, exit the position with timely precision

Fast MACD and STOCH settings

I am very successful trading with only two primary indicators set to faster than normal settings for scalping futures products on lower time frames. The method I learned has very defined rules which uses the STOCH as the set-up indicator and then I use the MACD as the confirmation indicator to pick my entry to the exact second (I use 89 and 144 price change charts).