<I>Most (all?) indicators are derived from the basic parameters of price, volume and time, and are therefore merely a convenient substitute for a well-calibrated eyeball. Some people have an eyeball sufficiently well calibrated to not need indicators.</I> But unfortunately you cannot create a mechanical trading system based on a well-calibrated eyeball, where as you can with rigid rules based on indicators and other derivatives of price action. I have the utmost respect for the traders who use instinct and less mechanical means to play the markets, but I cannot trust any method that cannot be put through rigorous statistical backtesting. Everyone fights with a different sword.
most indicators work well half the time what you need to do is first master reading the tape then a indicator will give a second opion that you could trade off the purpose of indicators is to avoid second guessing your ideas if you read the market makers edge book he has a great section on what your looking for but try to keep as simple as possible
You guys have put it well! I would like to add. When using indicators I was a much slower trader. Waiting for one or two, as the markets all left the station without me. Speed at the right time can make the trade +. I keep my eyes open looking for that one indicator that I could add, have not found it yet.
Sitting here mulling over your description, I find myself in an infinite emotional circle, first encouraged, then depressed, then encouraged again, then depressed.... Great post, candle.
Thank you Tom. I have put up a poll entitled: "What is the single most important element to successful trading?" I hope many of us can participate and share comments beneath the poll. Candle P.S. Ignore the other polls which are not my doing! (e.g. What is your favorite color?")... it seems like a newbie has been experimenting with the poll function and has got all confused! Hopefully he will delete them or one of the moderators will.