How many indicators do you need?

bigdolly

Sergeant Major
Messages
865
So why people use it if it`s lagging?
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.
 

sadip.tammat

Spamming from the offices of JustForex
Messages
28
They still provide useful information about the trend direction and support and resistance levels.
But it`s not too hard to see trend and support and resistance levels without indicators, just looking on the chart, isn`t it?
 

Kokomaster

Private, 1st Class
Messages
85
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.
 

dianajs

Private, 1st Class
Messages
778
But it`s not too hard to see trend and support and resistance levels without indicators, just looking on the chart, isn`t it?
I find that the EMAs and the Bollinger Bands indicators provide additional resistance and support levels which may not be otherwise obvious.
 

ForexVerified

Private, 1st Class
Messages
582
But it`s not too hard to see trend and support and resistance levels without indicators, just looking on the chart, isn`t it?
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.
 

downtrend

Sergeant
Messages
857
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.
 

dianajs

Private, 1st Class
Messages
778
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.
Which indicators do you think suit you the best?
I use mostly Bollinger Bands, RSI and various EMAs.
 

FarhanFx

Private
Messages
37
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.
 

mparama

Private, 1st Class
Messages
61
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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