Too much negativity here – so to balance it a bit…….
Mention indicators and people either love them or hate them
That’s life – we all have opinions, and sometimes we are best to keep them to ourselves
“Indicators don’t work”, how often have we heard that! – usually spouted by some so called “analysis know all” or one of their deciples – really impressive ha ha
Just because they can’t use them successfully or have another agenda doesn’t mean that others can’t. Be your own person – find what works for you
The gurus and know alls have their fair share of failed trades and we can expect the same
Most indicators have been designed to cater for a particular market condition whether it be trending or range bound – so you must use the correct type for the prevailing market condition
My preferred indicator type are oscillators
There are a few that can be used successfully in ANY market condition
There is at least one which offers good horizontal S/R levels (that provides NO LAG)
They can give prewarning of a possible trend change i.e. price weakening or strengthening
They also give prewarning where price has moved to an extreme and a retrace can be expected
Their trace can be used for trendline trading, Dow Theory hi/lo, pattern trading and conventional overbought/sold (with a little bit of work, this can be improved)
My trading is based on indicators (getting a bit lazy now – just want answers, not trying to impress myself now)
I use oscillators in all my strategies whether it be trend trading, indicator S/R (my favourite), trend reversals,breakout from consolidation, trend continuation or retracements
So if you are a visual person and indicators appeal to you then go for it – you may find they work for you also
You should understand their formula, and it should make sense to you otherwise you will probably not feel comfortable trading them
Don’t use indicators for intraday trading – too much noise. Best use PA and price S/R -will require more effort, than just glancing at a chart to see if your indicators are aligned
Bottom line:
Like everything worth while you have to put in the effort to receive the rewards – there is no shortcut
All our analysis does is give us an edge – when “x” occurs “y” usually follows i.e. a reason to enter a trade
PS You mentioned the ADX – have a read of ADXcellence, Dr Charles Schaap, he offers approx 10 ADX strategies – this may be a good starting point for you
Sorry for the above ramble, but INDICATORS DO WORK
We all have our favourite type of analysis and thats understandable, ultimately they give us our edge – whatever that is
Have a good day
Peter
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