Good/Bad Indicators

[jshelton31]

Whats in your trading system and what do you use them with? How are they working for you and why? This will be a great conversation.


Thanks,
James

 

[tomorton]

I think many are pretty good at showing what has already happened - maybe that's not what you mean by good though.

But this can do pretty well - just because something has already started, it doesn't mean it has finished. The No.1 indicator, a moving average, shows quite well when a trend has become established. And trends tend to continue. So a 50EMA that shows an uptrend for the last 10 weeks suggests the trend will probably continue for the next week too.

For the rest, it wouldn't bother me if I never saw them again.

 

[bbmac]

Whats in your trading system and what do you use them with? How are they working for you and why? This will be a great conversation.


Thanks,
James

Simply put: Certain repeating patterns of oscillator divergence/extremes couples with bol band deviation/extreme deviation that may develop at pre-identified potential support/resistance at which I look for a price action trigger, creates high probability trading opportunities both with and contra any prevailing trend that may be present.

An example is below, price is in a downtrend and pulls back from point A to find fresh supply at the previous 1hr swing low=previous imblanace of demand/supply=previous support=potential sbr at point B:

At this point B a 1min regular divergence based Reversal set-up develops with a good price action trigger;

...and this 1min trigger t/f Reversal set-up and price action trigger is supported by the next higher t/f, the intermediate t/f-5min hidden divergence based Re-entry (to next higher t/f trend after a pull back) set-up, back into the next higher 30min-trend t/f downtrend;

Although this supporting 5min Re-entry set-up does not develop in the most optimum overall price action position for reasons detailed on the 5min screenshot above, the combination of a trigger t/f set-up and price action trigger supported by the next higher t/f-5min set-up @ a pre-identified potential sbr/res zone made for a high probability trading opportunity and pip gain.

This is one intelligent way to use tech indicators.