Understanding your trading Indicators, What it can't do!
Dear Friends,
I was reading this thread and like to put my opinion. Part of any trader's success is their indicators. Every trader needs a good set of indicators, or strategies, to help him consistently take profits from the market. Your trading indicators are important foundation in your daily trading. A good system with rules, discipline and trading skills can produce good results. However, remember, indicators are simply tools. Without knowing price action or different market conditions any trading tools can become useless. Remember, Indicators are only 10%, 90% is the trader.
An architect, with a good set of tools, can make beautiful things because he has a plan, he has the skill to build, and he knows how to use his tools. However, these same tools do not make him an architect -- his skill and education make him an architect. Another example is if your handwriting is bad, you cannot blame the pen you are writing with. Instead you need to practice your handwriting skills. Every trader must know how, when and where to use the tools for his consistent success.
It can be a number of different reasons that a trader fail, lack of guidance, emotions, trading psychology, Confused chart settings or undeveloped trading skills. Trading skills cannot be developed by simply reading a few trading books or watching a couple of videos. Trading skill can only be developed by practice.
However, believe it or not, no indicator works 100% all the time. The reason is each second in the market is different. Indicators are programmed based on past performance. We are expecting history to repeat. We are trading the "probability" that it will.
Additionally, your indicator can only give you a piece of information about the market. It cannot help you to develop your skills or trading psychology. A trade set-up simply explains MAY BE. Different market situation needs different set-ups, an understanding of price development, and an understanding of who the players are.
I'm a long term trader in Eminis, I'm successfully using one trading method around 9 years now. I was using around 500 indicators when I started trading around 17 years ago. Never try to do that. Stick with a system that works and don't look fo that Holy Grail. It does not exist! Why I have to take a trade when I'm in congestion, even my indicators give me buy or sell signal? Look at my attached screen shot!
understanding the Volume and price actions definitely give results.
Wish you all good trading!
Dr.B
