Indicators

[Agent86]

Hi

I love indicators, all of them.

I know many do not like them because they are lagging, but since they are lagging that is what makes them great for exit strategy.

If you don't use them for entries because they are lagging and likely you get in too late anyhow, then why not use them for exits.

You don't want to exist prematurely and so I really love the MACD for exists only, however of course other things have to fall in line but MACD gives a nice exit signal in my opinion.

And of course once you develop your entry strategy the MACD or other indicators can help you also stay in the market helping you to confirm your position and helping to take out the emotion of your exit strategy.

Anyhow I love the indicators and they typically only do 2) things for me:
1. confirm position
2. help nudge my exit decision

Thats all I know.
Happy trading

 

[Raimundas]

If you don't use them for entries because they are lagging and likely you get in too late anyhow, then why not use them for exits.

Both of signals (entry and exit) are equally important. It's time to entry position and it's time to exit position. If you think that indicator is lagging for the opening, why do you think it is not lagging for the closing?

 

[Agent86]

Indicators Talk

Both of signals (entry and exit) are equally important. It's time to entry position and it's time to exit position. If you think that indicator is lagging for the opening, why do you think it is not lagging for the closing?

why do you think it is not lagging for the closing?

LOL huh What ?

What makes you think that I think that ? LOL

Nice chatting with you.

 

[Agent86]

Indicator Talk

Anyhow,

Just relating the indicator to the emotion of it all.

Typically people see something on the charts and many trade emotionally.

Again, not all but many do.
So considering that the indicators are lagging, then using them as an exit could help to smooth out some of the emotion and help to confirm position even when you may see a candlestick formation that could indicate a reversal, or perhaps a small wave/retrace that may make some people nervous.

I guess it also depend on the entry too. Because if you get in late due to the lag, then getting out late won't help you much either. Of course I realize it depends on the strategy and it's different for everyone.

But mainly regarding those who hate indicators specifically because they are lagging, so this topic is more directed toward that subject mostly.

So to re-summerize, I really like indicators as oppose to those who do not.

But simply put to those who do not, then I would say perhaps to experiment with them for exit strategies specifically since they are lagging.

This works very well for me, and even end in gains on exits that did not hit the target. So essentially you can have 2) exit plans, one that says = exit on target, but only if one or some of your favorite indicators agree, then if they show reversal then exit and don't wait till target.

This way you can likely end in gains on that trade even if it reverses past your stop, and also even if it extends to your target, either way you still are in some gains in many times.

So anyhow I have a great deal of success with them as a helper exit strategy only, but have not had really much success using them as entry points personally.

But I still like them I believe they have their use and tell a story regardless.

 

[Raimundas]

What makes you think that I think that ? LOL.

Your quotation ("If you don't use them for entries because they are lagging and likely you get in too late anyhow, then why not use them for exits") makes me think that you think that...

Nice chatting with you.

Thanks!!! And sorry for my poor english...

 

[Agent86]

Indicator Talk

Your quotation ("If you don't use them for entries because they are lagging and likely you get in too late anyhow, then why not use them for exits") makes me think that you think that...


Thanks!!! And sorry for my poor english...

It's true that this was said but if you read the original post the first thing I said was:

I love indicators, all of them.

I know many do not like them because they are lagging, but since they are lagging that is what makes them great for exit strategy.

I first set the premise that they are lagging and acknowledge this from the start.

Anyhow,because those who don't like them may have other entry strategies, and thus once in the market the indicator can provide a nice exit because you already have 2 things that occur that are not related to the lagging entry. Which is = Entry and Stop so the exit on indicator could stop you out prematurely of your stop.
Saving you losses because your stop is typically at resistance or support in many cases, and thus the indicator for exits will likely cross before that point so thats what makes it so good for exits since those who don't use them already have their entry strategy worked out and is likely in advance of the indicator since the indicator is lagging.

The fact that they already have an entry and stop strategy make the lagging exit so good.
Because it can provide 2) things =
1.a lagging decision to exit when the indicator continues in the same direction which will maximize profits.
2.a lagging decision to exit, but yet prior to the set stop which can help minimize losses or in many cases still close position with a gain regardless of whether or not it's hit the target.

Anyhow, I do like them as exits, but not as entries because if you enter late and exit late there is no benefit in my opinion.

Happy chatting