Most Indicators are useless - why does anyone bother with them?

[yacarob1]

Well, I love indicators. I couldn't trade without them!!

I use a 5 min and 15 min chart side-by-side with the same selection of indicators on each. It's taken me 4 years of experimentation to finally get to the selection I use.

I find it so tedious when someone says "all indicators are useless". It's actually a very ignorant statement.

My sole income is from trading, and I managed to catch a 70 point move on the dax on Monday, and 184 points in one move yesterday. I just laugh when people tell me they don't work!!!

I've recently started trading someone else's account now too, for a slice of the profits, that's how confident I am in my system.

I could have written this myself as it is very similar to the approach that I have developed for myself over the past 4 years. And it has taken that long to get to where I am right now.

I marry up certain chart formations/patterns with a particular combination of indicators.

When the formations or patterns appear on the charts, I check the indicator combo for certain specifics and if all is in order I give the green light to the trade.

If the pattern is there but the indicators are not reading as I want them to, then there is a definite red light and I will go and hunt elsewhere for a trade.

Seems to work ok.

Trading is also my sole income source.

 

[zigglewigler]

It's safe to say that there is a link between new traders using an encyclopedia of indicators, and experienced traders using few to none.

When you start out on that trapeze you insist on a net.

Maybe overly spangly lycra is analogous to blah blah blah blog bravado.

 

[new_trader]

[EDIT]
Trading is also my sole income source.

There is an Ex SocGen employee who also used to say that.

 

[yacarob1]

Oh, ok then...I also dig graves in my spare time for a bit of extra cash.

 

[rathcoole_exile]

It's safe to say that there is a link between new traders using an encyclopedia of indicators, and experienced traders using few to none.

When you start out on that trapeze you insist on a net.

Maybe overly spangly lycra is analogous to blah blah blah blog bravado.

Ziggle, uncanny how your avatar looks exactly like Heath Ledger in the new Batman movie. Whatever happened to him ?

 

[dbphoenix]

Ziggle, uncanny how your avatar looks exactly like Heath Ledger in the new Batman movie. Whatever happened to him ?

He killed himself a few days ago, sad to say . . .

 

[rathcoole_exile]

He killed himself a few days ago, sad to say . . .

has it been confirmed ? last I heard police had found a dead body and an empty bottle of sleeping pills and a few pills spilled on the floor, and 'were continuing their enquiries'

have to say, joking aside, he was one of my favourite young actors, A Knights Tale one of the best, funniest, light-hearted films I ever saw....

 

[dbphoenix]

has it been confirmed ? last I heard police had found a dead body and an empty bottle of sleeping pills and a few pills spilled on the floor, and 'were continuing their enquiries'

have to say, joking aside, he was one of my favourite young actors, A Knights Tale one of the best, funniest, light-hearted films I ever saw....

Either way, he's gone, and it pisses me off. All that talent . . .

If you haven't already, check out Casanova.

(speaking of OT posts . . . )

 

[rathcoole_exile]

Either way, he's gone, and it pisses me off. All that talent . . .

If you haven't already, check out Casanova.

(speaking of OT posts . . . )

if he couldn't handle the fame and fortune, at least give me the fortune, let me handle that problem

but you're right, let's get back On Topic

 

[dbphoenix]

but you're right, let's get back On Topic

If you insist.

I suspect that the reason for the rash of new threads about indicators and EZDoesIt systems (buy above this line and sell below, or buy off this bar shape, or buy/short when the blue line crosses the red line) is a result of so many people getting the market direction so wrong and missing out on most of what now looks like easy money (or trading countertrend and losing money while all about are raking it in).

Which is why I'd rather not get involved . . . :whistling

 

[rathcoole_exile]

If you insist.

I suspect that the reason for the rash of new threads about indicators and EZDoesIt systems (buy above this line and sell below, or buy off this bar shape, or buy/short when the blue line crosses the red line) is a result of so many people getting the market direction so wrong and missing out on most of what now looks like easy money (or trading countertrend and losing money while all about are raking it in).

Which is why I'd rather not get involved . . . :whistling

exactly ! great post ! trading is like white water rafting anyway, but why would you throw your canoe in the water when the river has burst its banks, mountain caps are melting, and log cabins are getting swept away .....

 

[temptrader]

I have not read much of this thread, and I probably won't read it.

My input here is that this thread will be copied and mocked over at the other side, because those at the other side (i.e. www.cit****ls.com) don't have a life . . .

 

[rathcoole_exile]

I have not read much of this thread, and I probably won't read it.

My input here is that this thread will be copied and mocked over at the other side, because those at the other side (i.e. www.cit****ls.com) don't have a life . . .

Can I be the first to hold my hand up and say I have no clue what you're talking about.
Sorry .....

 

[Rhody Trader]

I suspect that the reason for the rash of new threads about indicators and EZDoesIt systems (buy above this line and sell below, or buy off this bar shape, or buy/short when the blue line crosses the red line) is a result of so many people getting the market direction so wrong and missing out on most of what now looks like easy money (or trading countertrend and losing money while all about are raking it in).

The COT data backs you up on that. Small Specs were 65% long the mini S&P as of January 15th. I can't imagine they shifted too much in the other direction before this week started. If they have gone to 65% short as of this week I will know we've put the bottom in. :cheesy:

 

[dbphoenix]

The COT data backs you up on that. Small Specs were 65% long the mini S&P as of January 15th. I can't imagine they shifted too much in the other direction before this week started. If they have gone to 65% short as of this week I will know we've put the bottom in. :cheesy:

Having been through all of this before is so relaxing, as long as one remembers not to argue.

Wish I'd kept the "bottom calls" issued in May '00 . . .

 

[TheRumpledOne]

"IT'S NOT THE TOOL, IT'S HOW YOU USE IT"

A hammer can be used to create or destroy. It's not the hammer, it's how you use it.

Indicators are tools.

Most people fail to learn how to use the indicator as a tool.

I remember a study in a stock magazine that showed from backtest that moving averages crossover lose money. And taking the exact opposite position at the crossover lost money, too! Obviously, something is wrong with that picture, IMHO.

More money management and less greed should solve the problem.

Another problem is TOO MANY INDICATORS! I like to call them CHARTS ON DRUGS...LOL!! They look pretty but how in the world can you make quick decisions in the heat of the battle with all those squiggly lines all over your chart?

Don't blame the indicators!

Personally, I like a few HORIZONTAL LINES on my chart - The Buy Zone.

 

[dbphoenix]

"IT'S NOT THE TOOL, IT'S HOW YOU USE IT"

A hammer can be used to create or destroy. It's not the hammer, it's how you use it.

Actually, it's whether or not one needs the hammer at all.

I remember a study in a stock magazine that showed from backtest that moving averages crossover lose money. And taking the exact opposite position at the crossover lost money, too! Obviously, something is wrong with that picture, IMHO.

More money management and less greed should solve the problem.

Personally, I like a few HORIZONTAL LINES on my chart - The Buy Zone.

Your horizontal line, though, is only a variation on the MA XO, or, as far as that goes, any other threshold system.

. . .

 

[Rhody Trader]

Having been through all of this before is so relaxing, as long as one remembers not to argue.

Wish I'd kept the "bottom calls" issued in May '00 . . .

No kidding. I've got a guy with 20+ years market experience sitting not 10 feet from me in the office saying we've put the bottom in. I've got another colleague who said on a call this morning that so long as the S&P stays above 1274 he's bullish. Me, I'll just trade the way the market tells me to.

 

[dbphoenix]

No kidding. I've got a guy with 20+ years market experience sitting not 10 feet from me in the office saying we've put the bottom in. I've got another colleague who said on a call this morning that so long as the S&P stays above 1274 he's bullish. Me, I'll just trade the way the market tells me to.

His stochastic probably hooked

 

[darktone]

I have not read much of this thread, and I probably won't read it.

My input here is that this thread will be copied and mocked over at the other side, because those at the other side (i.e. www.cit****ls.com) don't have a life . . .

So... Is that veiled way of saying they use indicators!?

This topic always bar none ends up the same way!.

Ohhh yes they do! Ohhh no they dont!