settings for indicators

[max magic]

Hi everyone,

I'm new to T2W .. Forgive me if this topic has already been discussed, i've searched through the forums and couldn't find it ..

I'm new to trading, could anyone help regarding settings for indicators to trade the daily chart .. i use RSI .. MACD and ADX, or are the standard settings sufficent ? and on the chart itself is it better to use 20/50/100 SMA or EMA ? or another set of MA's ?

I'm a short to medium term trader ..holding positions from a few weeks to a few months.

Any advice would be appreciated,
Thanks..
Max

 

[timsk]

Hi max,
Welcome to T2W.
Most popular indicators found on charting software have default settings. Usually, these are the preferred settings of the person that created the indicator. Member's may volunteer the settings they use - and why - but that doesn't mean that they'll be the right ones for you. I suggest playing with the settings to see what happens to the indicator when you change them. This will help with your understanding of how the indicator works and what it is that you hope or expect the indicator to do.

There is a vociferous anti-indicator lobby here on T2W who will tell you that most (if not all) indicators are useless and you're better off not using any at all. Although this is a fairly extreme view, it is important to be very clear about why you're using the indicator and what it will tell you that can't (easily) be gleaned from watching price action.
Tim.

 

[max magic]

Hi timsk,

Many thanks for your reply, and thank you for the links..the trading plan template is very good !

Max