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Old 04-29-2007, 09:19 PM
dalby dalby is offline
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Re: Is it possible to trade without using any indicators?

when i scalp the dow futures (which is how i make my living), i also do not use any indicators (in the sense of lagging indicators)

i look for key price levels (potential support/resistance), and i watch the TICK, various related markets (bonds, ETF's etc.), etc.

i have traded successfully when on the road using just a 5 minute chart, a line chart of the tick, and a list of sectors. so, it is DEFINITELY possible to trade without indicators.

indicators are all (pretty much) derived from a formula applied ot a series of price points. thus, they don't give any more information than price does. they merely compile/compute etc. values based on price

fwiw, i *do* use lagging indicators for longer term stuff. i find it very useful. i think the futures are too efficient intraday for me to get any value from indicators. imo, indicators are how the retail traders trades, and they (overwhelmingly) are losing money on futures. i want to trade as a professional, not a retail trader.

generally speaking, this has been a means reversion market. i think at least part of the reason is that the market (which is merely the aggregate of all trader's actions) has adjusted to the profileration of screen based/arcade style traders, thus making these methods less useful . the market has to adapt, since it is all traders' actions.

i have an edge.

if most losing traders are using indicators, it follows that part of an edge is NOT using what the average joe is using

all imo of course

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