What's the best indicator?

Discussion in 'Technical Analysis' started by sbn, Jan 11, 2006.

  1. sbn

    sbn

    What's the best indicator or technical analysis to look at before getting into a trade?
     
  2. "the best indicator" doesn't exist.
    To get stability and consistency in your performance you need a system.
    A system is composed of a number of elements that together give you the information needed to trade well.
    It is impossible to put all the elements that influence the markets in 1 indicator.
     
  3. roctrend

    roctrend

    I agree. I would add a Real-time tested system that you Follow and not using your mind's biases. Trade what you see , not what you think. Price is your best indicator, Truth.
     
  4. Depends entirely on your trading style and timeframe.

    Indicators that I use for day trading are:

    Chaikin Oscillator
    ADX
    CCI

    For swing trading:

    MACD
    Bollinger Band width


    If I had to pick one single indicator it would be the CCI
     
  5. newbunch

    newbunch

    The best indicator if you are buying is a rising slope. If you are selling, a declining slope.
     
  6. All of above but if you must have just one, trendline(s) would do.
     
  7. cnms2

    cnms2

    Trendlines / channels and volume, then MACD.
     
  8. Although there's a few in-depth past threads on this topic here at ET...

    The answer that most don't want to here is that YOU are the best indicator.

    Think about this...lets pretend you and another trader are using the same TA method and get the exact same entry at the exact same time...

    However, one trader exits the position with a profit while the other exit the position with a loss.

    Simply, one of those traders was prepared to make money while the other was not.

    Another example...how many times do we traders get the price direction correct in our analysis but the trade in the same direction results in a loss.

    Therefore, things change in most traders headd once the trade is entered.

    Those traders (a few out of many) that are consistent in not letting their personalities have impact on their trading results...

    These are usually the profitable traders.

    By the way...the last trader that told me that was psycho mumbo jumbo...

    He finally blew out his 50k trading account in about 2 years of trading using the same method some of his trading pals are profitable with.

    Mark
    (a.k.a. NihabaAshi) Japanese Candlestick term
     
  9. sentiment
     
  10. the best indicator imo the the fact that so many people are quitting their jobs and posting on here and giddy about the market..


    too many newbies = crash coming to an economy near you imo
     
    #10     Jan 11, 2006