Forex - best indicators??

[free4440273]

Hi, I would really appreciate any advice on the best indicators for entry. I trade looking at a 5/15/30/60 min chart and I currently use MACD, Williams Percentage, RSI and Dynamic Zone Stochastic. But my problem is that I still am finding it difficult to obtain the best entry point. Any ideas folks for other really useful indicators? Perhaps I should not be asking as they might be considered 'ticks of the trade':cheesy: Thanks all, would really love any comments/advice.

 

[ffsear]

I used Fib retracements for my entry points. Along with S&R, this is all I use.

 

[bbmac]

Hi, I would really appreciate any advice on the best indicators for entry. I trade looking at a 5/15/30/60 min chart and I currently use MACD, Williams Percentage, RSI and Dynamic Zone Stochastic. But my problem is that I still am finding it difficult to obtain the best entry point. Any ideas folks for other really useful indicators? Perhaps I should not be asking as they might be considered 'ticks of the trade':cheesy: Thanks all, would really love any comments/advice.

Consider simplifying looking at just 2/3 charts, say 1hr to identify trend and potential supp/res (previous price pivots with confluence of fibs and trend lines where applicable) and then say go down to 5/15min to find an entry trigger via a good price action candle like a pin,doji,enguulfing or harami (inside.) If using indicators to assist with an entry trigger then look for oscillator extremes and divergence at these areas on the longer t/f. You could also look toward bollinger bands that measure volatility so when volatility is at an extreme or shorter term volatility is less than longer term with the momentum extremes/divergence (oscillators,) that along with price action confirmation can be a decent trigger.

Remember the highest probability trading opportunities occur when a confluence of tech reasons set-up. Remember that supp/res is key and the tech phenomenon of supp becomes res / res becomes supp is important if looking to buy the dips/sell the rallies in a trend.

G/L

 

[free4440273]

Thanks both, any other advice would be much appreciated

 

[Rhody Trader]

But my problem is that I still am finding it difficult to obtain the best entry point.

There is no indicator (or anything else either) that will provide you with the "best" entry point on anything approaching a consistent basis. You have to learn to be satisfied with good entry points that put the long-run odds of success in your favor.

 

[free4440273]

OK, thanks RT.

 

[Black Swan]

There is no indicator (or anything else either) that will provide you with the "best" entry point on anything approaching a consistent basis. You have to learn to be satisfied with good entry points that put the long-run odds of success in your favor.

spot on post.

 

[forker]

price is the best indicator, if you invest the time to study price more than relying on indicators you will be learning more about market structure. unlike oscillators market structure will give you the best entries. overlap that with S&R, trend lines, channels,fib levels or what i use (median lines) and you will gain better market experience and improved trading than any indicator could ever give you. the sooner you learn about market structure the better your trading will become but it is not a wham bam thankyou mam learning experience it will take time and patience to learn it.

 

[subaszabolcs]

Try this wan, it work's on any timeframe,
EMA (4 )put yelow color
EMA(9) put red color
EMA(18)put blue color
Macd(12,26,)
I use this technic for scalping on 1min timeframe
For long: when the 3 lines cross and the red (ema(9)) is above the blue (ema18)) AND the MACD's corsses and the blue line is above the white.
For short: when the 3 lines cross and the red (ema(9)) is below the blue (ema18)) AND the MACD's corsses and the blue line is below the white.

 

[jiggly]

the best entry indicator is price, always has been and always will be, these mathematical indicators are nothing but derivatives of price anyway.

 

[bbmac]

the best entry indicator is price, always has been and always will be, these mathematical indicators are nothing but derivatives of price anyway.

I agree that price is the ultimate entry trigger but some indicators can tell you things that price alone cannot. Oscillators can inform on momentum and when momentum is diverged from price and in a similar way bol bands can inform on volatility and when volatility is at an extreme or when shorter term volatility is lesser or greater than longer term volatility. These are useful confirming indications to price action alone. One eg of this may be a b/o which is higher in probability when shorter term volatility is greater than longer term on the b/o, if it isn't it may be a false b/o, - price alone cannot tell you this.

 

[forker]

I agree that price is the ultimate entry trigger but some indicators can tell you things that price alone cannot. Oscillators can inform on momentum and when momentum is diverged from price and in a similar way bol bands can inform on volatility and when volatility is at an extreme or when shorter term volatility is lesser or greater than longer term volatility. These are useful confirming indications to price action alone. One eg of this may be a b/o which is higher in probability when shorter term volatility is greater than longer term on the b/o, if it isn't it may be a false b/o, - price alone cannot tell you this.

this is an interesting point you make and one i think is juice for a good debate. since oscillators are a mathematical study of the underlining price, is the change in momentum behaviour you describe above not seen in price? the oscillators are based on a mathematical study that consumes open\high\low\close. If you think about it an oscillator at its core is mearly a different representation of price. now the inherent problems with indicators are lag and false signals where price doesnt follow though. if the trader does the analysis of just the indicator they will probably fall into trouble. it the trader follows both price and the indicator they have a much better chance (this is were your statement comes into play). There is absolutely nothing wrong with what your doing and many successful traders would confer with your statement. the ability to read price is a heavily underestimated ability. the average trader will probably tell you there isnt much too it is there? higher hi, lower low... well the truth is price has many hidden gems that will go unnoticed to the untrained eye. at the most basic level you have higher high\ lower low, you could go further to say price also has measured moves (ab=cd). you could aslo say that price trends\retraces\consolidates. these are all just very basic examples of reading price but in the light of what your saying are not enough alone and require confirmation of an indicator. if an indicator is just a different representation of price then how does price show the change in momentum as your describing? because the only difference between them is the representation and the lag that indicators exibit from the mathematical calculations. lets take a very basic example of the 2.

example A)
trader with an indicator describing momentum. this trader also reads price and has price in a bullish channel. this traders indicator is showing momentum is running out and begins to look for price to confirm with a break of a low. price confirms the weakness with a break of the low and then tried to test the high again giving the trader a low risk high probable entry.

example B)
trader only uses price. this trader also has price in the channel but also has the median of the channel as price always reacts too. this trader notices that price tested the median and tried to test the upper channel but pulls back to the median. now this is a sign of weakness in momentum. if price takes out a low now and then tries to test that upper channel again then this gives the trader a low risk high probable entry.


if you look at the examples these traders take the exact same entry but based on different technicals. Trader A relies on the momentum indicator and trader B reads price more effectively. going back to your statement i agree the mixture of the 2 is what many successful traders look for. the problem with your statement is you do not need the indicator to confirm this you just need a more extensive knowledge and understanding of price. Now if you ask me which one is better i guess you could say that trader B is better at filtering out a false signals. at the end of the day they both make money for the traders

 

[jaxson.angel]

the most important indicator in forex market is moving averages , just choose the compinations of 2 or 3 MA its amazing

 

[WallStreetHero]

you need a good combination.

i use EMA20,50 and SMA200, trendlines, channels, support and resistance, candlestick patterns, MACD, RSI and stockastics, and mix them all.

and Elliot wave theory and WD gann is also usefull.

 

[mrsoul]

Consider simplifying looking at just 2/3 charts, say 1hr to identify trend and potential supp/res (previous price pivots with confluence of fibs and trend lines where applicable) and then say go down to 5/15min to find an entry trigger via a good price action candle like a pin,doji,enguulfing or harami (inside.) If using indicators to assist with an entry trigger then look for oscillator extremes and divergence at these areas on the longer t/f. You could also look toward bollinger bands that measure volatility so when volatility is at an extreme or shorter term volatility is less than longer term with the momentum extremes/divergence (oscillators,) that along with price action confirmation can be a decent trigger.

Remember the highest probability trading opportunities occur when a confluence of tech reasons set-up. Remember that supp/res is key and the tech phenomenon of supp becomes res / res becomes supp is important if looking to buy the dips/sell the rallies in a trend.

G/L

Good post bbmac.

"Never stop learning".

 

[GCC]

Elliot wave theory and WD gann is also usefull.

May I ask how? I tried them both but I failed to make use of them.

I remember someone in this forum quoted Larry Williams, who said that Elliot and Gann are scams. Now I don't mean they are really scams and I believe you are really making good use of it, but would you mind sharing with us how to apply them in your trading?

 

[free4440273]

Oh dear, I was looking for a far more simplistic set-up; something that 'shouted' go Long/go Short at this entry point

 

[rathcoole_exile]

Oh dear, I was looking for a far more simplistic set-up; something that 'shouted' go Long/go Short at this entry point

would it just be easier for you if we all just made regular deposits into your bank account ?
save you the bother of all that nasty trading stuff .........

 

[free4440273]

would it just be easier for you if we all just made regular deposits into your bank account ?
save you the bother of all that nasty trading stuff .........

 

[rathcoole_exile]

................................................. :innocent: