TA indicators reliable or self-fulfilling prophecy ?

Discussion in 'Technical Analysis' started by drmiky, Jun 2, 2018.

  1. deaddog

    deaddog

    Study Price action.



    Most indicators take price action data and manipulate it to be visually pleasing, easier to read.



    Plot your indicator by hand. Do the calculations required and you will find that price causes the indicator to move.
     
    #11     Jun 2, 2018
  2. smallfil

    smallfil

    When I started trading, I was reliant on indicators. The problem with indicators is they are all a derivative of price. Example, RSI indicator, a stock could be overbought or oversold a long period of time. The stock itself does not know or care that it is overbought or oversold. So, does it matter to you if it the stock is trending up or trending down? Why not just follow the trend which is the line of least resistance? Atleast, you know you are trading with the big investors, hedge funds, banks, brokers, etc. Trends also, last longer than most investors and traders think they will!
     
    #12     Jun 2, 2018
    Xela likes this.
  3. Palindrome

    Palindrome

    Manually Back testing:

    Although time consuming...I'm now an expert at pattern recognition. I can see things in real time and distinguish between subtleties in the market that most can't.

    TEST TEST TEST... IT PAYS $$$$$

    Don't trade it unless you have tested it
     
    #13     Jun 3, 2018
    Xela likes this.