For those of us who trade without the encumberment of TA BS: http://www.youtube.com/watch?v=ZyVXFpD4k_s&feature=related TBH trading using TA is like riding a bike with stabilisers, it hinders anyone who knows how to ride a bike rather than helps. You get distracted looking at stuff that isn't necessary. Moon cycles is utter stupiity, Jesus christ wake up.
Well, I am not an indicator supporter for trading signals, entries or exits, but I reluctantly do admit that used in a certain way, they can be good trend filters, if that is your ballywick. Just a crutch for weak minds like mine, but it works for me.
I think people place way to much emphasis on it, especially on the small timeframes. It has its uses though, measuring risk, looking for targets.
I use a 9 and an 18 EMA on a 5 Min chart, looking for pullbacks in a defined trend. the EMA's are just to help gauge the strength/depth/angle of the trend, I guess. All I know is it works for me.
what are you trading? If its that simple... I'm in the wrong market, cause that shit isn't gonna fly in FX, or anywhere to my knowledge (in the long run). 5-minutes is noise.
Those defined trends you need for that to work, they rarely form, and when you think they do, they fail to become defined by the time you enter. The ones that do last long enough for you to make money out of the pullbacks are even more rare. This is not an edge this is an illusion of an edge.
You just stay out of sideways, choppy markets. That is where the indicator followers give it all back. Also, if you can get them to admit it, the folks who use indicators in some manner and are profitable, also rely on good old support/resistance action as the backbone of their trading.
Easy for you to say. How many times does it look strong and then decides to chop ? Take friday for instance.
Simply put patterns only exist in the past, therefore worthless in real time. They appear to work due to a deeply ingrained hindsite bias and survivorship bias.