Indicators are Liars! Support and Resistance Trading for FX

[aamarx]

Many traders believe that to be successful you need mountains of indicators that give you some kind of "edge" over the market. I am here to say that trading as a means of consistent income does not have to be painful or difficult. That less is certainly more when it comes to trading. Ive met traders with every indicator under the sun on their charts, with years of training under their belts having spent thousands of $$$'s and STILL not making a consistent income....

Why? Because Indicators are liars! Sure sometimes you might pull of a trade or 2 but in the end you always get spanked....Why? Because not everyone uses a MACD with your settings, not everyone uses a Stochastics or an RSI. I believe to be an effective trader you have to look at what the majority of traders look at...So what do most traders look at? Support and Resistance! Almost every system out there uses Support and Resistance to some extent. Support and Resistance is our number 1 indicator. So why not make Support and Resistance your system?! Mark up some levels on a chart using time frames from 1hr and above (this is what the big boys who move the market watch, so no lower please) and see what happens! Use other info that the majority of traders watch ONLY as confluence, Market Profile levels, Pivots and Fibs.

In the attached file is my daily worksheet, I will start posting this on the forum regularly as long as others find it of value. The levels described in the attachment are considered high probability areas for market "reversal", offering retracements of 10 pis to in some cases 500 pips. In many instances historically referenced Support and Resistance levels can help traders catch markets tops/ bottoms to the very pip! Why? Because Support and Resistance levels are the most widely used trading tool! Everyone from Hedge funds and banks to the small time trader at home use Support and Resistance levels

It might be difficult to leave the system you are using now so why not use these levels as a guide alongside set ups defined by the system/strategy that you are implementing. All levels described have historical significance and thus considered high probability numbers. The numbers described are in a fairly large range to take account of market volatility. Throughout the trading day these numbers can become areas of Support AND Resistance.

 

[VingTsunKuen]

Someone who is using indicators and having set of sound rules and firm discipline can be successful without question.But i agree with you to some extent.Indicators ARE derivated from price and they are lagging the price.Price is the king for me.
But the thing is that most people are uncomfortable to make they calls just based on price.They want some confirmation and they are finding it in their indicators based on their rules.And i think that it is perfectly fine to do so as long as they are successfully doing it.
I my self am using MAs on weekly for gauging the trend and i find it ok as long as i am sticking to mine rules regarding those MAs.
As for Sup/Res...10 traders can have 10 different definitions of support and resistance.
For some support can be 200MA or fibo level,some pivot point line,long term trendline,pivot high/low and so on..
For me definition of true support is price level where demand exceeds supply and definition of true resistance is price level where supply exceeds demand.
I am sticking to that stuff and i am trading it based on set of rules.
IMHO,at the end of a day it is not so much about are you using indicators or not..It is much more about having a set of sound rules and having discipline to trade those rules consistently.
Cheers,
VTK

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[Pippy5000]

You use them both.. traders who think indicators are voodoo simply don't understand the mechanics of the market. Not to be redundant, but when enough people believe in the voodoo, the voodoo becomes real. Try coming up with a strategy that uses stochastic, RSI, s/r and contrarian sentiment and you'll have a winning strategy. I find that most traders who decry indicators simply don't know how to properly read them, use them on the wrong time charts, or refuse or fail to incorporate them into an overall strategy. If 20% of traders will take profit when the myriad of similar indicators tell them to do so then the market will react whether you like it or not.

 

[forextraders]

Many traders believe that to be successful you need mountains of indicators that give you some kind of "edge" over the market. I am here to say that trading as a means of consistent income does not have to be painful or difficult. That less is certainly more when it comes to trading. Ive met traders with every indicator under the sun on their charts, with years of training under their belts having spent thousands of $$$'s and STILL not making a consistent income....

Why? Because Indicators are liars! Sure sometimes you might pull of a trade or 2 but in the end you always get spanked....Why? Because not everyone uses a MACD with your settings, not everyone uses a Stochastics or an RSI. I believe to be an effective trader you have to look at what the majority of traders look at...So what do most traders look at? Support and Resistance! Almost every system out there uses Support and Resistance to some extent. Support and Resistance is our number 1 indicator. So why not make Support and Resistance your system?! Mark up some levels on a chart using time frames from 1hr and above (this is what the big boys who move the market watch, so no lower please) and see what happens! Use other info that the majority of traders watch ONLY as confluence, Market Profile levels, Pivots and Fibs.

In the attached file is my daily worksheet, I will start posting this on the forum regularly as long as others find it of value. The levels described in the attachment are considered high probability areas for market "reversal", offering retracements of 10 pis to in some cases 500 pips. In many instances historically referenced Support and Resistance levels can help traders catch markets tops/ bottoms to the very pip! Why? Because Support and Resistance levels are the most widely used trading tool! Everyone from Hedge funds and banks to the small time trader at home use Support and Resistance levels

It might be difficult to leave the system you are using now so why not use these levels as a guide alongside set ups defined by the system/strategy that you are implementing. All levels described have historical significance and thus considered high probability numbers. The numbers described are in a fairly large range to take account of market volatility. Throughout the trading day these numbers can become areas of Support AND Resistance.

You are a lil right but i agree with pip5000 too,my trading system is based on support and resistance,but i have good custom indicators to go along with it and i make constant profit monthly,my results can sure even speak for themselves.

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[white4burgundy]

Indicators are also helpful in trading, that's one thing you cannot set aside. However, there are different existing indicators which one trader might be comfortable referring to. Although these different indicators may be "blended" depending on the circumstances if only bring about a productive and effective strategy for a trader.

Some may use the charts as reference, while some adopt Simple Moving Averages, and Bollinnger Bands. BUt, as I have read it right, timing is a factor to aid a trader in going about the trading strategy.

 

[Pippy5000]

s/r IS the most important, but indicators help you determine whether or not to play a certain s/r..

 

[TAjammy]

i am actually pretty convinced that you can use stochastics for a resistance becomes support type of play... but most of the time it's obvious whether it's a good play or not so you don't really need them.

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all

 

[aamarx]

****LEVELS FOR EURUSD, GBPUSD AND USDJPY****

Hi everyone

Please find attached todays levels. The S/R numbers are in the black column, the MP, Pivots, Fibs, Simple Moving Averages and Summary Numbers are for confluence and information.

Always remember to use the numbers as a guideline for potential areas of high probability plays.

Always use a set up based upon your system to enter a trade.

Good trading all