That must be the case for some of them but I don’t think it is with everyone. It really depends on the rader and some of them choose to use indicators in the beginning while others wait before getting started with them. It also depends on the strategy you’re using and if it allows you to stick to those indicators in the long run. Like I have been using moving averages from the beginning and I still go for it whenever I’m trading. So can’t really say if that is how everyone works, right? What made you think that in the first place?
When I started off as a trader, the only indicators I knew about were RSI and MACD. With time, I got to know about more indicators and even tried using some of them. But I got back to these two; maybe because I had obtained a hold of these and can use them to the best of my advantage.
croisssan posted: How is it fundamentally different from conventional trading strategies?
I would say a lot of indicators don't 'indicate' much, and are more like a breadcrumb trail of the past. On my charts I trade across all 3 sessions, so session times are the most important information to me. Recent screen shot and my set-up to do this. I also like to have DXY open to monitor real-time USD activity.
Most indicators are lagging, and just tell you where the trade have been,
by the the time Andys pichfork had cleared out the stables, and all the moving SMA 's & EMA, and five day MA is not set in stone. all Traders can choose different time periods and the most popular ones in use are the 10 day, 20 day, 50 day, 100 day and 200 day moving averages. O and a big mac D. with cheese and fries,
YOU are just trading after the horse has left the room. The (Stable)
Being a true scalper, I can allege that indicators matter a lot in this sphere. Of course, you shouldn't combine all the indicators, because you won't even see the graphic in this case lol. It's enough to get acquinted with couple of them, which can be combined. All the combinations you can find either in the internet, or they can be provided by your broker. In my opinion, traders should be flexible in case of trading with indicators. No doubts, that it may take plenty of time to learn the mechanics of all indicators, however only in this case you will be able to distinguish them.
Once you realise FX is driven by the force of a currency, and not even necessarily the currency you are trading... then indicators do just get in the way a bit. I have put all my focus into how currencies affect each other. You'd be amazed how much logic there is to a seemingly unlogical beast.
Understanding this flow, together with indicators can be useful. I have a very faint reading from parabolic SAR on my charts, which is data puled from 5 different timeframes. It's useful so see what direction something is heading at a glance... but that's about it. Even then, the true directional force could be against the grain.....
Sooner or later the one who wins, is the one who thinks they can...
Indicators are a useful tool and can aid your decision making if you are a beginner, but as you move forward and gain experience you’ll eventually realise that depending on too many indicators can actually make your trading complex. I’ve started keeping my charts clean and I do install only 3 or 4 indicators at max on my charts.
kroxobor posted: Indicators are a useful tool and can aid your decision making if you are a beginner, but as you move forward and gain experience you’ll eventually realise that depending on too many indicators can actually make your trading complex. I’ve started keeping my charts clean and I do install only 3 or 4 indicators at max on my charts.
The more complicated the trading, the more trouble will follow. The trader has to do it properly in a positive system. And the strategy that will be traded with it should be taken easily.
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