Are technical indicators truly helpful in trading, or are they just a way to make the process feel more scientific and controlled?

[ImogenBeaumont]

Since most indicators lag behind price action, do they actually add value, or just create a false sense of certainty that many traders rely on? What's your take on this?

 

[xatta]

It's that "false sense of certainty" that causes problems and not the indicators themselves. Studying the behavior of the financial markets is a social science and not a natural science. Can you guess what I am going to eat for lunch today? You could look at my past choices for lunch and other related data, and make a prediction that is much, much better than random. Still, you will fall far short of 100% accuracy.

 

[ImogenBeaumont]

It's that "false sense of certainty" that causes problems and not the indicators themselves. Studying the behavior of the financial markets is a social science and not a natural science. Can you guess what I am going to eat for lunch today? You could look at my past choices for lunch and other related data, and make a prediction that is much, much better than random. Still, you will fall far short of 100% accuracy.

Nice analogy there. Thanks.

 

[Larisa]

Since most indicators lag behind price action, do they actually add value, or just create a false sense of certainty that many traders rely on? What's your take on this?

Indicators are helpful, but relying solely on them can be risky. Price action should always lead! Indicators are just there to support your decisions, not dictate them.

 

[accoladius]

It totally depends on the person and the strategy.

There really is a Billion ways to make and lose money trading.

Some people use several indicators and every doohickie available, some people don't even use charts, trading is often more about you than what you use in my opinion.