Best indicators

If your blood pressure is above 200, it might indicate that you might be on the wrong side of the market!
If the nappy is full and there is a strange aroma in the trading room, it might indicate one's commitment to see every tick.
These indicators are very universal and work even alonside Vista, and alonside many charting software, MT4 including.
 
FWIW I used to use all manor of indicators and in my opinion none are up to much. As the OP says "I've had mixed results" well so did I. No matter what numbers I put in that darn MACD box the results were still mixed. No matter how fast/slow I made the stochastic it always got me in to soon or to late.

I've vociferously defended indicators on this forum but alas I concede defeat. Unless used in conjuction with levels they're as much use as a chocolate fire guard. if you can get the levels why bother with the indicator.

A PA entry will get you in a lot quicker than a MACD cross over or a stochastic slingshot or whatever indicator method you want to use. Thus reducing your loss if you get it wrong.
 
Ambrose Ackroyd said:
My dog is the best indicator.

Tail wags .......... buy

Tail down and stationary ........ short the crap out of the market.

Dog sh1ts on the floor ........... market on verge of collapse .... stay on the sidelines until you have cleaned up the mess.
Click to expand...

are you a dog whisperer? :LOL:
 
If for instance you got an indicator that gives you a 60% win/loss ratio and then you find another indicator that by pure chance also gives you a 60% win/loss ratio, what is your overall w/l ratio ?
I reckon it is 60% but here is what someone else says :-

01-20-10 04:20 PM



--------------------------------------------------------------------------------

--------------------------------------------------------------------------------




EXAMPLE of using multiple indicators to any chart:

Indicator #1 - Potential 75% accuracy
add
Indicator #2 - Potential 75% accuracy
(now the combined accuracy drops to 56.25%)
add
Indicator #3 - Potential 75% accuracy
(now the combined accuracy drops to 42.1875%)
add
Indicator #4 - Potential 75% accuracy
(now the combined accuracy drops to 31.640625%)

Go ahead . . . keep adding indicators if you want to continue to lose money.

Now we all know that the accuracy of ANY indicator, on average, is far less than 75% but I used that to make an extremely "rose colored" point. Now look at using a better example of just 60%.

Indicator #1 - Potential 60% accuracy
add
Indicator #2 - Potential 60% accuracy
(now the combined accuracy drops to 36%)
add
Indicator #3 - Potential 60% accuracy
(now the combined accuracy drops to 21.6%)
add
Indicator #4 - Potential 60% accuracy
(now the combined accuracy drops to 12.96%)

It is no wonder that 95% of traders fail.


Any clues out there ??
 
''Indicator #1 - Potential 60% accuracy
add
Indicator #2 - Potential 60% accuracy
(now the combined accuracy drops to 36%)
add
Indicator #3 - Potential 60% accuracy
(now the combined accuracy drops to 21.6%)
add
Indicator #4 - Potential 60% accuracy
(now the combined accuracy drops to 12.96%)

It is no wonder that 95% of traders fail.''

The point is, the maths is wrong. If, by compounding 4 indicators in the way showed above you could reduce your success rate to just 12.96% then the answer would be simple: just do the opposite.

The answer is not that simple because if it was you could easily achieve a positive win rate 87.04% by reversing the trades.
 
For what it's worth from my point of view...

Trading naked is just as good as with an indicator.
Plus the laundry bill is much lower.

If you need an "indicator" then I suggest you draw some lines on the chart and have a very good reason for putting them on.

To be honest I think folks would have a much better chance trading if they just did the above.

You need to get over some mental hurdles to be able to trade naked but once you get to that point you will never go back!!

And to follow up on a short post already on this thread I believe if used the right way Andrews Pitchfork is the best set of "lines" that you can use that are canned.
 
Pat494 said:
Which indicators do YOU recommend and why ?

I have been using Macd, RSI, Mov averages etc. for years with mixed results.

Perhaps you favour a mixture of 2 or more indicators to compliment each other ??
Click to expand...

Indicators are useless in a recession and lag when theres a change in volatility. Price action and simple S:R is the way forward.
 
Indicators are fine. They get a bad rep because people think that just following a cross or something should make you tonnes of money. Price action however, is some vague BS term, and so if you're not making money doing it, it's YOU who is the problem, nobody seems to think the same of indicators though.

Indicators aren't going to make you tonnes of money easily, nor will price action, both can work if you put the effort in.
 
One thing and one thing only ditch all indicators. Learn to intrepet *price action* through support/resistance levels combined with candle stick formations. That is all you need because it gives you *current* information.

If you are still in love with indicators they can *sometimes* act as additional confirmations of the current movement but trading purely on the basis of them is not wise.

Again this is my opinion and everything thing in this industry is collection of opinions. Work with whatever works for you.
 
Hotch said:
Indicators are fine. They get a bad rep because people think that just following a cross or something should make you tonnes of money. Price action however, is some vague BS term, and so if you're not making money doing it, it's YOU who is the problem, nobody seems to think the same of indicators though.

Indicators aren't going to make you tonnes of money easily, nor will price action, both can work if you put the effort in.
Click to expand...

While I believe you are correct and can "win" with just price or with indicators and price (or with just indicators) it make more sense to me to focus on price and not use more time on other things that are almost always a derivative of price. i.e. indicators.
 
reliance on indicators instead of price and market sense are the reasons why 95% fail. Price turns when majority buy/or sell at any level. It is better to look at those prices where majority are watching than tweaking btw timeframes using any indicator. No indicator can deliver concensus opinion
 
leopardtrader-com said:
reliance on indicators instead of price and market sense are the reasons why 95% fail. Price turns when majority buy/or sell at any level. It is better to look at those prices where majority are watching than tweaking btw timeframes using any indicator. No indicator can deliver concensus opinion
Click to expand...

The correct reason 95% of people fail in trading (and any other type of business) is because people refuse responsibility. Once people learn that the "buck" stops with them, they have a chance to start to do their own work and make something of them selves.
When that happens then they can start to win at what ever it is that they are doing.
Trading naked or fully clothed at that point makes no difference.

This is why all of the successful traders tell people that they have to do their own work and that just about any method can be used to win. You just have to fit the right one to the kind of person you are.
 
Pat494 said:
Which indicators do YOU recommend and why ?

I have been using Macd, RSI, Mov averages etc. for years with mixed results.

Perhaps you favour a mixture of 2 or more indicators to compliment each other ??
Click to expand...

I intentionally went to the first post. The best book I have ever read on building a trading system was "Mastering Technical Analysis" by John C. Brooks. This book helped me more than any other book to build a good trading system.

Good Trading,
Dave
 
safvan said:
One thing and one thing only ditch all indicators. Learn to intrepet *price action* through support/resistance levels combined with candle stick formations. That is all you need because it gives you *current* information.

If you are still in love with indicators they can *sometimes* act as additional confirmations of the current movement but trading purely on the basis of them is not wise.

Again this is my opinion and everything thing in this industry is collection of opinions. Work with whatever works for you.
Click to expand...

I totally agree on this. They have some use, but only to confirm what you know. Candlestick patterns reoccur around support and resistence all the time. Trading is just a game of patience.
 
I have also used Heineken Ashi candles.

The Heineken tasted ok especially when chilled.

Not too sure about the Ashi bit though.
 
JahDave said:
I intentionally went to the first post. The best book I have ever read on building a trading system was "Mastering Technical Analysis" by John C. Brooks. This book helped me more than any other book to build a good trading system.

Good Trading,
Dave
Click to expand...

Thanks JahDave
I had a look at the contents via Amazon. Hopefully I am up to speed on the rsi etc.
 
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