05-09-2020, 06:13 PM
Is trading using indicators good or bad?
One of the most frequently discussed topics of Forex trading is the benefits or harms of using indicator indicators. Should the trader use indicators, or does this just diffuse the overall picture and add nothing to the " net " price-the stock that can be seen on a simple price chart?
The answer is that such thinking – "good" or "bad" - is stupid. We are talking about trade here, not where you can buy the best Burger, which is the best football team, or so on. Trading is about making money. Therefore, it is very important to ask the right objective questions and get objective answers to them.
Do the indicators that you use when trading on the Forex market help you? Or maybe they provide you with information in a more convenient and understandable way?
If this is the case, it would be crazy not to use indicators. An indicator is nothing more than a certain transformation of information from simple price charts, processed in a certain way for better perception and Analytics.
If you think that indicators do not help you, or even hinder you, please trade only on OHLC charts, such as bar charts or Japanese candlesticks.
A couple of months ago, I came across a video where a lecturer explained that his career as a trader began with trading indicators, but over time, he began to use indicators less and less, and now, for a couple of years, he has been trading on "naked" price charts. The lecturer also said that the use of indicators is a terrible addiction, which is difficult to get rid of, and that not using any indicators is the hallmark of a successful trader. Now it's funny, I have to admit that when I started as a trader, I thought the same way for the first couple of years. Crazy!
The truth is that any indicator is useful if the trader knows how to use it. Of course, if you just add a couple of random indicators to the chart – it will not make them useful. You should understand what the indicator shows, how it works, and how to interpret the indicator values. Otherwise, it will be very difficult to know when and how to use it. Most indicators "work" only under certain conditions. But the same can be said about any price figure. If you blindly trade on any indicator or figure without any verification – it is unlikely that your trade will be successful!
As a system trader, I use various indicators in one case or another. And I know exactly when and which indicator will be useful for me. It did not come immediately, it is achieved by practice. And everyone decides for themselves whether to use something other than price charts in trading.
One of the most frequently discussed topics of Forex trading is the benefits or harms of using indicator indicators. Should the trader use indicators, or does this just diffuse the overall picture and add nothing to the " net " price-the stock that can be seen on a simple price chart?
The answer is that such thinking – "good" or "bad" - is stupid. We are talking about trade here, not where you can buy the best Burger, which is the best football team, or so on. Trading is about making money. Therefore, it is very important to ask the right objective questions and get objective answers to them.
Do the indicators that you use when trading on the Forex market help you? Or maybe they provide you with information in a more convenient and understandable way?
If this is the case, it would be crazy not to use indicators. An indicator is nothing more than a certain transformation of information from simple price charts, processed in a certain way for better perception and Analytics.
If you think that indicators do not help you, or even hinder you, please trade only on OHLC charts, such as bar charts or Japanese candlesticks.
A couple of months ago, I came across a video where a lecturer explained that his career as a trader began with trading indicators, but over time, he began to use indicators less and less, and now, for a couple of years, he has been trading on "naked" price charts. The lecturer also said that the use of indicators is a terrible addiction, which is difficult to get rid of, and that not using any indicators is the hallmark of a successful trader. Now it's funny, I have to admit that when I started as a trader, I thought the same way for the first couple of years. Crazy!
The truth is that any indicator is useful if the trader knows how to use it. Of course, if you just add a couple of random indicators to the chart – it will not make them useful. You should understand what the indicator shows, how it works, and how to interpret the indicator values. Otherwise, it will be very difficult to know when and how to use it. Most indicators "work" only under certain conditions. But the same can be said about any price figure. If you blindly trade on any indicator or figure without any verification – it is unlikely that your trade will be successful!
As a system trader, I use various indicators in one case or another. And I know exactly when and which indicator will be useful for me. It did not come immediately, it is achieved by practice. And everyone decides for themselves whether to use something other than price charts in trading.
