I know many people on ET claim to have given up on indicators . I am seeing more evidence to join them for several reasons . The main reason for me is that I've found there to be no indicator(s) that provide an edge in all conditions and theres no way to know when to employ which set of indicators . This combined with the inherent nature of lag in all indicators makes trusting them difficult for me . I do see indicators as part of automated systems potentially part of an edge . I trade Eminis and started looking to trade currency mostly because I feel some of the pairs have a tendency to trend better than futures . I have started looking at the EURUSD without any indicators . I apply trendlines on two timeframes and try to enter the longer timeframes trend direction and keep an eye on S/R on both timeframes . My objective is to ride out price movements and maximize gains . My question is does anyone else practice this kind of strategy and if you find it to be a viable edge for Forex ?
Yeah , mums the word on the details . I think most if not all those praising indicators have an agenda which would account for all the " educators " out there .
Yes, though I trade currency futures, not retail forex. I trade mostly Euro and Pound futures. Best Wishes, ddaytrader
From your experience, what's the difference between FOREX and other markets, like ES, NQ, stock? The reason I ask is because there is no volume information, and times and sales, which are very important for entry. I'm not sure if the system works in other market can be applied onto FOREX trading without these information. I heard some people said FOREX is kind of like gambling. Thanks.
Reaver, Is "Day Trading" by Joe Ross, only about day trading, or would it be a worth while purchase for longer term trading?
Are you indicating trading FOREX consistent profitable is possible even lack of volume and times and sales? I'm wondering if I need to trade ES/NQ instead of FOREX? thanks.
Yes and yes. I tend to look a bit deeper into the price action, but you can work off S/R or areas of supply and demand..
Reaver , those books explain 3 line break charts dont they ? I'd like to learn more about that . Have you used them ? and how can I construct them , thanks .
ALL indicators are simply a reflection of price action and a marketing play for all those involved in bringing them to traders. They are a lazy man's easiest way to lose all his money. Trendlines are more pure but they are subjective also. After all you have to decide where to draw them. But given a choice between a useless indicator and trendlines, I would pick trendlines everytime. It's impossible to remove subjectivity completely, so the key is to simplify as much as possible and respect pure price action. Try to spend you time identifying value. Just like anything you buy or sell. If you wanted to buy a car or a house, you wouldn't pay too much would you. At least you would try not to. The question is....how do I know if this is a good value. You don't worry about being exact with your estimates because you know it is impossible. Rather, you try to buy in an area of value that common sense tells you is okay.