Day Trading & Forex Forum

DDI

I started trading in 2002 and then I tried using indicators such as MACD, Stochastics, RSI etc..... I put them aside as I always saw conflicting signals so in general never helped my trading.

However I am being lured into using them again. For those who use them in their trading which ones work best and also do they work best long term (i.e daily charts) or are they just as efficient on 5 min and 15 min charts?

Would be grateful for responses.

thnx

mr_cassandra

Oscillators are useful as long as you bear in mind they are 'myopic'. By that I mean they assume evrything should conform to the time frame they are set for.

If you have an index/stock/whatever that has the audacity to rise longer than that time frame, the oscillator confidently begins to show 'divergence'.

It may only be divergence from the view of the indicator and hold no other meaning than that.

__________________
You CAN make money with mechanical trading systems, after confronting three key points.

1. There can be no perfection, the goal is to capture as much as possible, with an imperfect system.
2. There will be drawdowns and losers, the key is to pursue point one while keeping drawdowns and losers endurable.
3. You will find many people here who think this can't be done...drive AROUND them.