Trading With or Without Indicators
Everyone has a preference of how to trade and what works for them. I find it interesting when others say this is the best way or that is by far the only way to trade. I know traders that use only price action to trade with. We all know traders that only use indicators. My opinion is that each method has its merits and strengths. Each method has it weaknesses and faults.
The weakness of each method is mostly from the person that is trying to use it. They do not have the skills and experience to use it well so they think it is faulty. Both methods are valuable when you learn and know what to look for in the signals. Some of the strengths of both are that traders can make money with each of them once they learn how to use them.
With indicators you should only take signals in the direction of the trend. This is the fault of most new traders they attempt to “capitalize” on every swing of the price. This same advice holds true with the use of price movement.
Divergences provide a good indication for potential market direction changes. Price action gives signals of market direction change as well. They are both used and can help with the indication of the strength of a movement. Divergences and price action both are useful for filtering out what would be a knee jerk type of price action. Use them together and you really have an advantage.
Trades May Come And Go But The Indicators Stay And Produce
I was reading an article about a guy who started a computer business when the industry was new and growing. As he grew and was successful he noticed that there were many others doing the same thing. There was no longer anything unique about his company. He decided to take the gamble of focusing on data storage.
He said that even though a company may downsize the data never does. So he felt that there would be a place for his business for a long time to come. Keeping track of data storage for companies.
I was thinking how this is like the currency market. A currency pair may trend or channel but there are still good trades and an opportunity to make you some pips. News comes and goes the currency pairs go up and down. If you specialize on learning how to use some indicators you can trade any currency pair that is making a move rather than only trading one or two currency pairs.
What we are saying is, specialize on learning how to use a few indicators and not generalize in learning a lot of currency pairs. You might have your favorites but be ready to trade any currency pair that is moving. This way you will be an indicator specialist being able to move between the time frames to find the best entry point.
Be good at the trading platform and the use of a few indicators to enhance your currency-trading career.
To Chat Or Trade
I was reading a statement by a trader the other day and I found it quite amusing. This is what he says “Lately it just seemed that some folks where hanging out to catch a trade call and make some money.” I am not sure what a trade call is but I was thinking that most people trade the currency market to make some money.
This person goes on :
“Which we know that later on down the line it will all backfire and then someone will get upset because the account just had a margin call”.
Now that you have started this thread I feel that I can go somewhere to get market views and discussion on what is going on in the world without someone coming in and asking that classic question….”Which way do you think the pound is going today””