The reason I dont use any indicators

Discussion in 'Technical Analysis' started by Grantx, Sep 12, 2017.

  1. Grantx

    Grantx

    I stand corrected.
     
    #161     Sep 15, 2017
  2. Quetzaltenango
     
    #162     Sep 15, 2017
    Xela likes this.
  3. d08

    d08

    Sigh, all this talk again about indicators performing magic. They don't. Take a look at the formulas behind them and then you'll start to understand what they're useful for. They are tools, not a method.
     
    #163     Sep 15, 2017
  4. Xela

    Xela


    Not that kind of Xela/Xelajú; sorry! [​IMG]
     
    #164     Sep 15, 2017
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  5. Handle123

    Handle123

    In my views, scalping is going for 1-6 ticks, for ES trading based on original entry based on weekly stats, I average $9 to 37 on profitable trades, my risk is opposite for most scalpers but it is over $200, I ave down on everything and anything and any timeframe, and I do not recommend. What your example is more of day trading and most likely based on Momentum type trading, going with the flow, they either learned internal speed of the market thinking which is faster than indicator which has slight delay and why "they" are able to risk only 5 ticks.

    If you study enough of like ES pivot highs/lows, they are broken by 1-3 ticks but depends on swing lengths and time of day, so "normal" swings as per Elliot has 3 trend waves(but not in stone and can have mini higher waves(even more opportunities)) and 2 dip or congestion waves, so can often count on end of wave pivot one to be broken and be a trend break of more than 1-3 ticks as wave 3 is often the largest of the trend waves, but breaking of wave three pivot is more often not a trend break, but small break of a few ticks cause the majority of retail lack knowledge of finer detail of chart reading, most are "BTFD" on a breakout of couple ticks above a high where often the entry is near that wave three pivot high, equal to it or actually above it, and system just waiting to reverse few ticks above that pivot high, system will be feeding retail their buys and am getting short. The weak retail might have a one point stop as they are under funded or plain scared and under educated, system only going for 6 ticks, but based on speed of the market. You test and test, to record how long each tick takes going over ten plus years of tick data, so you develop probabilities of getting 1-6 ticks. But often times you can see where retail is getting stopped out from time and sales, all the "1"s. Now if a signal is based on trendlines, it is even more fun as retail gets in 2 ticks above some meaningless trend line but trend lines in my mind is bait, system wait for 1-3 ticks above a pivot to sell, and many others are selling as well, volume drives price, so price goes other way to trip protective stops and system be reversing at the trendline which might be 1-2 ticks better priced, market should rise again and retail might jump on board at some point and system looking to get out.

    Am at stage of my life of reading charting like a newspaper, and either go/no go based on recent past, system going to add more and more lots no matter where system get in as in my mind perfect entries means less, am playing against uneducated traders and there are many, it been like this since the 1980s. And just like Hedge funds, I read almost each day so many end their hedge funds due to losses or people get scared, you have to wonder why asset managers who supposed to be best of the best losing money in a market that keeps going higher. They can't read charts?

    TGIF ??? whatever that means, just love playing the game.
     
    #165     Sep 15, 2017
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  6. Sprout

    Sprout

    Thanks for the insightful post. What does BTFD stand for?

    EDIT:
    Also how do you tell the difference between a retail and an Algo placing orders?
     
    Last edited: Sep 15, 2017
    #166     Sep 15, 2017
  7. userque

    userque

     
    #167     Sep 15, 2017
    Sprout likes this.
  8. schweiz

    schweiz

    everybody uses indicators. indicators are all forms of presentation of information that can be used. indicators are indicating something, so watch the order book is an indicator, watching pricecharts are indicators, MA, RSI... are indicators. even watching the moon might be an indicator.
    everything a trader uses as information in any form is an indicator. there are however different forms of indicators but that is the visual side of the story, not the essence. the visual side is only important to translate the indications you generated in a readable form. can be charts, patterns or anything else.

    so this thread is useless as everybody in fact uses the same things, but they are not conscious about it. in fact they discuss only the way the indication is presented to them, not the underlying.
     
    #168     Sep 16, 2017
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  9. themickey

    themickey

    I think you have gone too far here with your interpretation of what an indicator is, in other words you have an exageration on the definition.
    Going by your thinking, we could go one step further and say looking at the clock is an indicator, the time the market opens, closes, trades.

    http://www.investopedia.com/articles/trading/12/using-trading-indicators-effectively.asp

    Let's keep it real.
     
    #169     Sep 16, 2017
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  10. SunTrader

    SunTrader

    That would be correct and real. Time is an indicator - that most traders ignore. But that wasn't your intention was it?

    Everything other than price itself used to place a trade can be considered an indicator. What is wrong with that?
     
    #170     Sep 16, 2017
    schweiz likes this.