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How many indicators do you need?

Discussion in 'Beginners Bootcamp' started by Triantus Shango, Aug 19, 2013.

  1. bigdolly

    bigdolly Sergeant Major

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    Because its a general misconception about the use of technical indicators. The data they use to execute computations is price that's why they are lagging by definition. But its not the reason why they doesn't work. Price movements is a complex of patterns and based on the assumption that they repeat you can carry out backtesting to see what is the success ratio of making right prediction on the price history.
     
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  2. dianajs

    dianajs Private, 1st Class

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    They still provide useful information about the trend direction and support and resistance levels.
     
  3. sadip.tammat

    sadip.tammat Spamming from the offices of JustForex

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    But it`s not too hard to see trend and support and resistance levels without indicators, just looking on the chart, isn`t it?
     
  4. Kokomaster

    Kokomaster Private, 1st Class

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    I am seeing a lots of posts about trend indicators these days. People are showing some arrows indication and market seems to be following those arrows. I think those are lagging indicators after the marker made its move.
     
  5. dianajs

    dianajs Private, 1st Class

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    I find that the EMAs and the Bollinger Bands indicators provide additional resistance and support levels which may not be otherwise obvious.
     
  6. ForexVerified

    ForexVerified Private, 1st Class

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    I agree, you can clearly see price levels without the use of indicators, whether they be horizontal or diagonal (channels and trend lines). With the help of candlesticks you can get a probable direction - either it breaks the support/resistans or it bounces off.
     
  7. downtrend

    downtrend Sergeant

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    I choose 2 or 3 indicators after a long practice which suit me. I can trust on them But never follow them as they are showing me. I have to decide with different tools either I have to do trading on indicator or not. No one is perfect they are helping tools not definite for trading decisions.
     
  8. dianajs

    dianajs Private, 1st Class

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    Which indicators do you think suit you the best?
    I use mostly Bollinger Bands, RSI and various EMAs.
     
  9. FarhanFx

    FarhanFx Private

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    It's always good to have some or the best indicator you feel is good for your trade and main important thing is to watch the market and all the news about the same aspect.
    Indicators are just an addition.
     
  10. mparama

    mparama Private, 1st Class

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    why to use indicators for trend as signal.......you can just zoom the chart in different TimeFrame and you can see the trend yourself.
    The best use for indicator is in EA and cBot (I use cAlgo) where you can combine them to automate your entries and most important the exit
     

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