Best of the Worst

[gurujohn]

I realize all TA indicators lag and I'm willing to accept that. I trade the ES.

I am looking for the best indicator for TradeStation, that will give me the highest probability of capturing 1 point from the trigger of the indicator. I know there are many indicators posted and written about on TL (let alone TS), but I look to the members here to drill down and give me the best of the worst, so to speak. Please include the eld download for TradeStation if you can.

Thanks to all and may you have great success!

[Sledge]

If you are just starting to learn, the best advice is to forget the indicators and learn to read charts from scratch. It is a hard road, but far more rewarding financially in the long run. If you get into a bad habit now of trying to use an indicator "crutch" it will lead to frustration and failure quickly.

Try looking around the forum to see what best suits you.
There is a nice Candlestick group/thread
or
Volume Spread Analysis as well

or other methods that assist you in learning to read the bars and what they tell you- far better than trying to take the lagging indicator route.
Sledge

[brownsfan019]

It'd be so nice wouldn't it - find an indicator that you can program that just cranks out 1 pt a trade like no tomorrow.



You have a choice here:

1) Keep searching for this and spend a great deal of time and money

2) Spend that same time learning how to trade for yourself

Your money, your time, your decision.

[TacTrader]

FWIW

I got rid of all of my "indicators" and just trade price and volume, trend, support and resistance. I was all tied up into moving averages for some time but after spending alot of time on this forum, reading material I got about the subject and applying it in real time I don't think I will go back to a squiggly. I am still learning, but since getting rid of all that stuff I have made more progress than ever.

Good luck,

[mcichocki_]

Any tips on defining support and resistance?
I paper trade the YM and use 2 tactics.

1) I do a weekly chart up with S&R based on the waves/cycles and what seem to be stumbling blocks, then put those into intraday charts to use as key levels.

2) I run the big gaps on intraday and bracket the levels just outside the gap that appear to have the most action.

I know some use WRB etc... I'm just gathering ideas since I too am dumping all but 1 indicator and getting in touch with the basics.

I'm very interested in what you guys have to say.

[Hlm]

I personally have no problems with indicators. However, you need to know what information you are looking to get out of one. Sit down and look at a chart on different time frames. Study the patterns you see, and learn how to read the story. After this has been completed and you understand what is going on, then you can think about using indicators to increase the speed and efficiency of mining data you have a specific purpose for. In my opinion you shouldn't have to look any further than some of you standard indicators such as a stoch or sma. Also, the concept of "lagging" doesn't really bother me for an experienced trader. I think some traders get caught up on using that as an attack against indicators. Just like anything, if used improperly you will get bad results. They key is to take account of multiple time frames and understand the different levels of possible support/resistance and supply/demand surrounding price at any given time.

Now a more direct answer to your question. If you are looking for pure momentum plays to squeak out a point or so (not taking into account RR) many traders just use standard indicators. Most will have at least one oscillator be it a Stoch or MACD. They will also usually have a few SMAs or EMAs up to take trades off of or to trade tight crosses. Of course I do not condone this type of trading without first knowing how to read the market. My main point is that I believe there is no overall "best" indicator out there. The closest you will get is the handful that everyone uses and talks about. When using indicators you shouldn't have to go any further than what's already in your platform.

[brownsfan019]

And to piggyback on what Hlm said, if you do use indicator(s), make sure to find ones that are dis-similar in what they are representing to you. In other words, you do not want or need to almost identical oscillators. Bollinger on Bollinger Bands talks about that in his book actually.

I realize, like hlm, that most consider indicators to be voo-doo or lagging, or whatever you want to call it, but they can be an aid to a trader looking for that one little vote of confidence.

The biggest concern you have to have when using any indicator is what does it look like when it fails (usually trend day or range day) and how will you shut it down when this happens.

[james_gsx]

I wish there was something like that available. I would have used it along time ago on my search for great indicators. Now I use a few different indicators from time to time, and it changes depending on what market I'm using and the time frame. The simple reason I use them is to help confirm what I am looking at on a chart. I won't sell because I see an "overbought" (btw I hate that word) signal, nor will I buy on an "oversold" indicator. Instead, I will look for a signal to enter a trade WITHOUT the indicator, and the indicator is simply there to say, "James, once again you have proved to be a badass."

When you do decide to work with indicators - when you are past the holy grail stage - I suggest going over to www.stockcharts.com and playing around with what they have available. Use the MACD, stochastic, RSI, whatever and find one that fits your trading style and personality. You may walk away thinking you don't need one, and that's absolutely fine. But don't count on them doing you any favors

[brownsfan019]

Well said gsx.

In addition to using stockcharts.com, you can get a monthly platform from OpenECry. There is a trial period after which there is a small monthly fee for the platform AND data. Note - this is only good for futures.

[Sledge]

	Quote:	james_gsx
	The indicator is simply there to say, "James, once again you have proved to be a badass."

Nicely Played!