Is it just me or all indicators work?

Discussion in 'Technical Analysis' started by MarketAddict, Jan 17, 2012.

  1. Now I haven't tested out my theory yet, but I think most indicators will work only if you can Identify the trend or the direction of the market. MA crossovers, macd div, rsi, bollinger bands, etc. Even trendlines, double bottoms and top, pin pars etc.

    I truly believe all of this stuff works if you can IDENTIFY where price is heading. I think most people that say indicators don't work are the same people that can't read price action right. The ability to read price action first I believe is the key.

    Am I the only one noticing this stuff?
  2. Is this supposed to be a joke post?
  3. Joke? No sir!
  4. jack411


    You are correct. Context is what matters.

    It usually goes - people look for the easy way to trade (ie crossover systems) sometimes it works, other times it doesnt. They say "indicators don't work!". They begin to focus on learning PA because "indicators don't work". They learn PA well, and say "Price is king! Indicators don't work".

    If after learning PA they went back and put the old indicators on the screen they'd likely start seeing things that maybe they didn't before. They might even have a better understanding on how to filter out incorrect indicator signals. PA gives false signals sometimes too. But those people don't ever say "PA doesn't work". It's usually something like, "I take my small loss and wait for another setup." Or, "I take my small loss and reverse once I re-read the PA". Indicators can provide additional confirmation or even help get you in early at times.

    It's no different that reading a trading book over and over and picking up new pieces of info each time. Or studying over charts for hours and hours and picking up new pieces of info each time.

    The problem seems to be that since so many people START with indicators, that they use them incorrectly and write them off before really learning how to properly identify good setups.

    I'm not saying that indicators are necessary, just agreeing that everything works.
  5. ..............................


    bitch 'n moan.
    cut the noob some slack.

    he will figure it out.

    wanna whine, start up your own thread and let me know when you post it up.

    The Oxford English Dictionary defines 'random' as "Having no definite aim or purpose; not sent or guided in a particular direction.

    just the way it is......



  6. Indicators do work. Institutions have indicators on their screens.

    You aren't the only one that know what you know.
  7. Indicators do work. Institutions have indicators on their screens.

    You aren't the only one that knows what you know....


    random has an issue .

    most stock jocks and hedgies look at all the other crap that is discounted into price.

    always late 2 the party.

  8. Wasn't whining.
  9. kut2k2


    Hmmm. Given that the supposed purpose of most indicators is to indicate whether or not there is a trend, saying that they only work once you have somehow independently identified the trend immediately marks them as useless IMO. Aside from reading price action, an alternative is to find an indicator or indicators that don't need confirmation from other indicators for their validity.
  10. Very carefully, think about what your saying.

    If you can IDENTIFY where price is heading and can read the price action...why would you have the need to use indicators. :cool:
    #10     Jan 17, 2012