Confused Just need a little help

[gio.gee]

I have not been trading long, I have recently got interested in Forex, i now understand candles to a certain degree. I am now looking at Fibanacci and Pivot points and the elliot wave.

After reading many threads on this forum I have come to a point that i dont really now which way to go.

The key messages seems to be, patients, simplicity and money management are really important. What i need help with is, what is the best indicator or indicators to work with with, I only just come across Pivot points but what is better,
Fibonacci.
Pivot points,
MACD,
Moving averages
Elliot Wave

The guys who have been trading for a long time what indicators are you using?

I know your going to say everybody has there own style and different things work for different people?

I Just want somebody to point me in the right direction if thats possible.

Thank you for your help

 

[tomorton]

Although I understand the indicators you mention, this all sounds quite complicated, with the following possible outcomes -
contradictory indicators - inability to determine direction and time to pull the trigger
ambiguous indicators - some will tell you to exit a perfectly good position
misleading indicators - some will tell you to stay in that losing position and hope for a recovery towards your break-even.

I wish TA software allowed us to enter price action (daily OHLC) into the future so we could simulate positions and what will happen to the various indicators if we entered at a given price today. Plan what you will do with the trade if price goes up, down or sideways, but price is the key, not where this or that Elliott Wave might go.

 

[gio.gee]

Although I understand the indicators you mention, this all sounds quite complicated, with the following possible outcomes -
contradictory indicators - inability to determine direction and time to pull the trigger
ambiguous indicators - some will tell you to exit a perfectly good position
misleading indicators - some will tell you to stay in that losing position and hope for a recovery towards your break-even.

I wish TA software allowed us to enter price action (daily OHLC) into the future so we could simulate positions and what will happen to the various indicators if we entered at a given price today. Plan what you will do with the trade if price goes up, down or sideways, but price is the key, not where this or that Elliott Wave might go.

Hi Tom

Thank you for the reply i'm sure ive seen some of your posts on candles, one in particular how if a candle closes above the 14 ema line on day 1 and the second day it is a white candle and above the 14 ema line it scores 3 you then trade the direction.

Do you use any other indicators or rely mainly on candles and then rely on experince?

 

[tomorton]

I do use indicators to confirm direction, but never entry or exit points. Yes, I do use a MA as a reference point but its the behaviour of price, not the indicator score, that is the entry / exit.

I am very sceptical of Elliott Waves and Fibonacci levels as trading tools - they may work and they may event be an elegant theory that truly explains market behaviour, but its the bottom line that counts, and I don't encounter significant numbers of traders who are consistent earners from these. The exception proves the rule of course and probably someone will now tell us they only use Fib and make a colossal income....... but so what. EW remains a tentative and unproven explanation of market dynamics that seems to only apply at certain times, the boundaries of which are not defined by Elliotticians: well, even a stopped clock is right twice a day.

 

[dimsdaletraders]

I do use indicators to confirm direction, but never entry or exit points. Yes, I do use a MA as a reference point but its the behaviour of price, not the indicator score, that is the entry / exit.

I am a newbie of just 11 weeks, but that is the way I've gone too, and so far it's working for me as well. I will look at indicators/moving averages to tell me "this is the wrong trade", but never as a signal to enter a trade.

Good luck, and keep on truckin...

Tess