Why We Use Indicators?

[Guest muhitalam]

I think there have 3 reasons to use indicator.

 

1) Alert: For example, An indicator can alert us when there is a break out signal or a pair is overbought or oversold

 

2) Confirm: They can confirm other methods of analysis. If we see a daily pin bar on a bearish candle, it`s hitting resistance, and we see through an indicator that it is overbought. That confirms possible sell opportunity.

 

3) Prediction: People sometimes use indicators to also predict future market directions.

 

If anyone have more info PLEASE share....

[prax 10]

it's all about point of view.

market price form a pattern, and how to define thus pattern we need a tool to get a more easy understanding.

indicator simply alert when to entry, or to exit transaction.

could be based on chart pattern, volatility rate, or market range.

[shuvo7748 10]

Basically i use Indicators for `Alert` . it`s give info when there is a break out signal or a pair is overbought or oversold. you are right this 3 point correct .....

[sergso 10]

Because you I can backtest them.

[zupcon 10]

they provide an objective quantifiable signal, which as already pointed out makes backtesting far easier than would be possible using a more subjective or discretionary signal

 

They are useful for automation

 

Personally I use them to filter out noise, particularly in faster timeframes,

 

If youre using any kind of evidence based approach, indicators are useful simply because they remove subjectivity.

 

I know people who use them to impose disipline (for example, they wont close a trade until they see a close below a particular moving average)

 

It could also be argued that they provide a psychological crutch, leading to a false belief in their ability to predict (which is ridiculous, but still widely believed)

 

Theyre just convinient in identifying potential setups, which leaves the day free to do something more productive (like slagging off trade 2 win)

[hopeforcharles 10]

Basically i use Indicators for `Alert` . it`s give info when there is a break out signal or a pair is overbought or oversold. you are right this 3 point correct .....

 

hello bro i am new here and i want to trade binary options, i will like to know if i can use alert to trade binary? and can u please tell me the best or probably a nice alert software i can use that will help me grow. thanks

[Styles20001 10]

MACD gives so much info about momentum that I can't imagine operating from price action alone. Using it has made me VERY successful......as a paper trader for the last year.

[shuvo7748 10]

hello bro i am new here and i want to trade binary options, i will like to know if i can use alert to trade binary? and can u please tell me the best or probably a nice alert software i can use that will help me grow. thanks

 

Hello hopeforcharles,

 

How is going your trading? I will PM you, your requirement info

[wuxingxing 10]

This indicator is written by VTL.

 

The indicator is a trend following indicator.

This is momentum-type indicator so you know how to buy or sell in the right time.

You can use it to catch moving in trend market.May be in range market it is not good to use.

 

The indicator use Stochastic, RSI to generate signal.

This indicator uses Stochastic with periods 8,3,3 and RSI 3 cross RSI 13.

it use a confirmation trend macd cross zero.

If both are crossing together then you will shall view the signal to open position

so you just need to open position.

 

You can set sl to arrow of signal in the chart.

And you can close position when you look opposite signal.

 

While use the indicator you can look two messages in left of chart.

condition still good : it mean market momentum is keeping to right direction.

so, you can keep position while you can look this messages.

 

overbought,,dont op but take profit : when market is overbouth or oversold, you can look

this messages. it is good time to take profit or start trailling to keep profit.

 

please use it avobe 30min time frame to catch good moving.

 

Enhanced MACD

EnhancedMACD.zip

[tradelab03 10]

Technical indicators are mathematical calculations based on a trading instrument's past and current price and/or volume activity. Technical analysts use this information to evaluate historical performance and to predict future prices. Indicators do not specifically provide any buy and sell signals; a trader must interpret the signals to determine trade entry and exit points that conform to his or her own unique trading style. Several different types of indicators exist, including those that interpret trend, momentum, volatility and volume.