Forex - best indicators??

[VingTsunKuen]

It has been told but as i can not agree more i will repeat.Price is the king.If one know how to analyze price action properly it can lead you to low risk/high reward entries which have very high probability of going into your favor.
By putting more indicators on your chart you are just complicating things.Ask your self what is that you would like to see on your charts?Bunch of indicators which are covering price or price it self?
Whats whole fuzz about in trading?Well,it is about price and its movement...So for me it is logical to concentrate on analyzing price and nothing else.
Regards,
VTK

 

[WallStreetHero]

It has been told but as i can not agree more i will repeat.Price is the king.If one know how to analyze price action properly it can lead you to low risk/high reward entries which have very high probability of going into your favor.
By putting more indicators on your chart you are just complicating things.Ask your self what is that you would like to see on your charts?Bunch of indicators which are covering price or price it self?
Whats whole fuzz about in trading?Well,it is about price and its movement...So for me it is logical to concentrate on analyzing price and nothing else.
Regards,
VTK

what ways are you using to anaylize price

 

[butterfly100]

Forex

price is the best indicator, if you invest the time to study price more than relying on indicators you will be learning more about market structure. unlike oscillators market structure will give you the best entries. overlap that with S&R, trend lines, channels,fib levels or what i use (median lines) and you will gain better market experience and improved trading than any indicator could ever give you. the sooner you learn about market structure the better your trading will become but it is not a wham bam thankyou mam learning experience it will take time and patience to learn it.

What do you mean when you say "study the price"? What tools you use to study/benchmark it if you don't use indicators? How about the news? How do you treat them in your analysis?

Cheers
Butterfly100

 

[VingTsunKuen]

what ways are you using to anaylize price

If we look at the charts and use analyze which is rule based we can identify where is supply level above and demand level below current price.These are typical entries that i take when price revisits those levels.
Cheers!
VTK

 

[disi]

I
By putting more indicators on your chart you are just complicating things.Ask your self what is that you would like to see on your charts?Bunch of indicators which are covering price or price it self?
VTK

yeah..this is mistake most of newbies make. They add indicators thinking it will help. If anyone thinks adding more indicators is the way to go I have an experiment for you.

What if you add new moving average to your chart? Now what if you add another one(different periods of course). What if you put 3 ma on your charts? wow - this is great and would help you even more! One ma is for short timing, second is medium and the last one covers longer time periods. Eureka!

And now listen to this - what would happen if you add infinite number of moving averages onto your chart? Chose your answer:

a) You would see everything - every possible movement of price
b) You would see nothing - screen covered with one, coloured soup

Interesting, huh?

 

[butterfly100]

Best Indicators

yeah..this is mistake most of newbies make. They add indicators thinking it will help. If anyone thinks adding more indicators is the way to go I have an experiment for you.

What if you add new moving average to your chart? Now what if you add another one(different periods of course). What if you put 3 ma on your charts? wow - this is great and would help you even more! One ma is for short timing, second is medium and the last one covers longer time periods. Eureka!

And now listen to this - what would happen if you add infinite number of moving averages onto your chart? Chose your answer:

a) You would see everything - every possible movement of price
b) You would see nothing - screen covered with one, coloured soup

Interesting, huh?

Let's make another extreme example, how about not having any indicator at all, how would you then base your decision? How can you spot the mkt is over-bought/sold, res/sup and so on?

cheers
Butterfly100

 

[free4440273]

Interesting, huh?

Let's make another extreme example, how about not having any indicator at all, how would you then base your decision? How can you spot the mkt is over-bought/sold, res/sup and so on?

cheers
Butterfly100

That's exactly my point: price action IS king I agree, but I am just trying to ascertain what people's best indicators are (say, for a 15/30/60 min setup).

 

[butterfly100]

Understood..how can then you say...I look at the price and I decide to entry at X Level. How do you base you decision? How do you know the price is weak or strong?

Cheers
Butterfly100

 

[disi]

It has been told but as i can not agree more i will repeat.Price is the king.If one know how to analyze price action properly it can lead you to low risk/high reward entries which have very high probability of going into your favor.
By putting more indicators on your chart you are just complicating things.Ask your self what is that you would like to see on your charts?Bunch of indicators which are covering price or price it self?
Whats whole fuzz about in trading?Well,it is about price and its movement...So for me it is logical to concentrate on analyzing price and nothing else.
Regards,
VTK

Understood..how can then you say...I look at the price and I decide to entry at X Level. How do you base you decision? How do you know the price is weak or strong?

Cheers
Butterfly100

If I may put my 2 cents...Old chinese proverb says:

"do not look at entry moment, it is not that important - look when to close the trade" - Confucius

 

[butterfly100]

If I may put my 2 cents...Old chinese proverb says:

"do not look at entry moment, it is not that important - look when to close the trade" - Confucius

What do you trade?

 

[disi]

What do you trade?

It does not make as big difference as one would imagine. One of my system trades EUR/USD. While when I trade on my own I pick any market that has potential.

There is enormous difference between Forex and let's say futures/commodities markets - but within forex most markets are very similar.

 

[forker]

What do you mean when you say "study the price"? What tools you use to study/benchmark it if you don't use indicators? How about the news? How do you treat them in your analysis?

Cheers
Butterfly100

well by studying price you can put structure to the market. when you structure the market you can see when to step in and take a trade and when to stand aside. think of the chart as a map and in order to understand the map you need to identify where you are relative to your surroundings. Price structure is your surroundings and you use tools such as trend lines, channels, ranges, ab=cd, fib retrace\target extensions, andrews forks .... to get your current position on the map.

look for setups by studying swing lows\highs,breaks and price close at the trade zones you identified by structuring price. over time as you study the charts you will see and learn how to read price at these zones of interest and what price often does prior to a move. you should be able to identify simple strategies on your own. you will notice repeating setups and learn how to read small clues to keep you out or get you in. no indicator in the world can give you a more clear picture than price itself. as for news you dont need to pay much attention to it apart from standing asside for about 5-10 minutes afterwards. by reading price you dont need to know what the news is because price tells you everything you need to know about what the market is doing and where it wants to go.

 

[butterfly100]

well by studying price you can put structure to the market. when you structure the market you can see when to step in and take a trade and when to stand aside. think of the chart as a map and in order to understand the map you need to identify where you are relative to your surroundings. Price structure is your surroundings and you use tools such as trend lines, channels, ranges, ab=cd, fib retrace\target extensions, andrews forks .... to get your current position on the map.

look for setups by studying swing lows\highs,breaks and price close at the trade zones you identified by structuring price. over time as you study the charts you will see and learn how to read price at these zones of interest and what price often does prior to a move. you should be able to identify simple strategies on your own. you will notice repeating setups and learn how to read small clues to keep you out or get you in. no indicator in the world can give you a more clear picture than price itself. as for news you dont need to pay much attention to it apart from standing asside for about 5-10 minutes afterwards. by reading price you dont need to know what the news is because price tells you everything you need to know about what the market is doing and where it wants to go.

Thanks Forker...very clear and good explanation...will keep you updated on how my trading goes..at the moment only Indices and FOREX, while I learn

 

[WallStreetHero]

well indicators do have success if you use them properly.

i look at slow stockastics, rsi and macd now and then, and hide it away, they have helped alot in identifying breakouts and break downs you just need to mix it up s/r, trendlines and moving averages and candlestick patterns.

 

[jiggly]

well indicators do have success if you use them properly.

i look at slow stockastics, rsi and macd now and then, and hide it away, they have helped alot in identifying breakouts and break downs you just need to mix it up s/r, trendlines and moving averages and candlestick patterns.

stoch, rsi indicators are oscillators. you dont need to look at all of them, just pick one, alexander elder's triple screen trading method is an example for this,

have 3 charts, e.g monthly, weekly, daily, (market tide, market wave, market ripple)

on the monthly, you need a trend following indicator, a simple moving average will do, (trade in the direction fo the tide)

on the weekly, another trend following indicator, another moving average or even an MACD, (is the wave moving with or against the tide)

on the daily, an oscillating indicator, such as your stoch, RSI or a CCI, (the market ripples oscillating backwards and forwards)

when the market tide is up and the market wave is up, you look to enter early on the ripples(when indicator shows under-sold) to pressume the trend will re-establish itself.

this is just one example of a simple system using indicators, but through time and experience you will realise that you cannot see the forest through the trees using them.

in my opinion, and I started using them at first also because I didnt know any better, they are all ****.

you are a trader not a punter sitting at some fancy casino, with squiggly fancy lines all over it, learn to think like a trader. why do I want to buy, who will I sell to, is this instrument in demand,

its all about supply and demand along with price and volume of activity, nothing else at all. indicators do not tell you any of that.......they just tell you, price is turning up here after it has turned up.

the sooner you get off of matters relating to indicators the sooner you will start to learn what you should be doing to further develope your trading abilities and to think correctly.

thats my advice...

what do you think, traders in the pits are screaming at each other, the rsi is turning up, I should buy, the MACD is crossing, buy, buy, buy.........

they are all bullsh*t

 

[mahi120]

stoch, rsi indicators are oscillators. you dont need to look at all of them, just pick one, alexander elder's triple screen trading method is an example for this,

have 3 charts, e.g monthly, weekly, daily, (market tide, market wave, market ripple)

on the monthly, you need a trend following indicator, a simple moving average will do, (trade in the direction fo the tide)

on the weekly, another trend following indicator, another moving average or even an MACD, (is the wave moving with or against the tide)

on the daily, an oscillating indicator, such as your stoch, RSI or a CCI, (the market ripples oscillating backwards and forwards)

when the market tide is up and the market wave is up, you look to enter early on the ripples(when indicator shows under-sold) to pressume the trend will re-establish itself.

this is just one example of a simple system using indicators, but through time and experience you will realise that you cannot see the forest through the trees using them.

in my opinion, and I started using them at first also because I didnt know any better, they are all ****.

you are a trader not a punter sitting at some fancy casino, with squiggly fancy lines all over it, learn to think like a trader. why do I want to buy, who will I sell to, is this instrument in demand,

its all about supply and demand along with volume of activity, nothing else at all. indicators do not tell you any of that.......they just tell you, price is turning up here after it has turned up.

the sooner you get off of matters relating to indicators the sooner you will start to learn what you should be doing to further develope your trading abilities and to think correctly.

thats my advice...

what do you think, traders in the pits are screaming at each other, the rsi is turning up, I should buy, the MACD is crossing, buy, buy, buy.........

they are all bullsh*t

Hello Jiggly,
I am a beginner so excuse my silly question
I would like understand a bit more about volume of activity since it seems that forex does not show the volume of activity on charts.
And would you possibly use the related futures currency volume to help you in your decision making when trading forex?

 

[jiggly]

Hello Jiggly,
I am a beginner so excuse my silly question
I would like understand a bit more about volume of activity since it seems that forex does not show the volume of activity on charts.
And would you possibly use the related futures currency volume to help you in your decision making when trading forex?

for forex you can use 'tick' volume as a proxy, some will say that it is worthless, but volume just depicts 'activity', as traders we are only interested in analysing how active it is from one period to another and its affect on the price i.e what did the price do when subjected to such activity (see attached chart)

although there is not much out there on price and volume analysis, this is in my opinion the only true way to trade (along with classic chart patterns and formations, support and resistance, trendlines) and provides us with a window to view the market through.

examples :
> price is edging upwards into new highs, the range of each period is very narrow, volume is decreasing, there is something wrong here, the market probably cannot sustain higher prices because there is growing dissinterest in it at these levels.
> price has a wide range on the way down, volume of activity is super high and the price closes well off the lows, potential selling climax
> price has bounced off support, any attemt to lower the price, but not beyond the lowest low is met with decreasing volume, selling pressure could and supply could be absent and the price is due for a rise.

you may want to read up on this, books I have found very useful in this area, which I have studied greatly are:

reminiscence of a stock operater, the jesse livermore story
tape reading & market tactics, by humphrey b. neill
the undeclared secrets of the stock market, or the revised version, master the markets by tom williams

everything else is secondary.................

 

[butterfly100]

hi

Jiggly, thanks for that. How about the news? Say you trade GBP/USD, how much attention you pay to macroeconomic and political news from US and Britain. At the end of the day they are drivers behind the volume....Cheers

 

[jiggly]

I personally just look at the bigger picture with regards to what is happening in the world,

I mainly trade the daily timeframe, any particular news instance is practically irrelivant to me, they all contribute to the larger trend over time and that is what I pay attention to.

all this jumping in and out on news releases, trading numbers is something I stay away from. its all about the bigger picture for me, this means I can keep my composure and take my time assessing a situation, 50 pip moves are noise, I might scalp 100 pips here and there if I think there is some low hanging fruit but I am looking for 500 - 1000 pip trades so I can scale into a large position and get as much of my money riding a trend..

the big money is made on the larger time frames, with less sweat.

I have attached an example trade that I would look at below, I also posted this over on the potential setups thread, a macro economic news release does not really come into play, but the cummulative effect it has on market sentiment which you can gauge from the price over time does.

good luck

 

[jiggly]

there are some price and volume threads over here

excellent reads

http://www.trade2win.com/boards/first-steps/16010-best-t2w-threads.html#post766246