Magic of Indicators

[Guest Passion]

One indicator by itself is worthless.

 

A combination of indicators can do the magic.

 

My quest to find out the best indicators that can provide successful profitable trading opportunities lead me to explore and work with some major indicators.

[Obsidian 10]

One indicator by itself is worthless.

 

A combination of indicators can do the magic.

 

My quest to find out the best indicators that can provide successful profitable trading opportunities lead me to explore and work with some major indicators.

 

Sorry to say it but imvho, posts without any explanations are worthless.

[MightyMouse 12]

Sorry to say it but imvho, posts without any explanations are worthless.

 

The thread is about magic. in my not so vho magic is unexplainable so the thread is perfectly on track.

[Tams 20]

Indicators are truly magics

magics cannot be explained

[SIUYA 11]

Magic is just a sleight of hand....an illusion designed to trick people.

[MightyMouse 12]

Magic is just a sleight of hand....an illusion designed to trick people.

 

My wife makes things disappear all the time. She can't even explain it.

It is without doubt a miracle that I am still married with all the magic that occurs.

 

Are there any miracle indicators?

[ratmpower 10]

Your good judgement is the best indicator.

[fast 10]

One indicator by itself is worthless.

 

A combination of indicators can do the magic.

 

My quest to find out the best indicators that can provide successful profitable trading opportunities lead me to explore and work with some major indicators.

 

You're mostly correct. Using a single indicator won't yield favorable results for long, and yes, proper use of the right mix of indicators can prove fruitful, but the quest to find not merely good indicators but the so-called best indicators can unintuitively hinder your success, for repeatedly becoming acquainted with presumably better indicators puts you in the position of being a jack of all trades and master of none. It's okay to explore new opportunities, but I'm of the opinion that becoming adequately proficient with some of the well known indicators will enable you to make minor adjustments to offset their disadvantages.

 

Also, a single handful of carefully selected indicators is usually more than enough. You don't need multiple indicators pulling double duty.

[SIUYA 11]

Also, a single handful of carefully selected indicators is usually more than enough. You don't need multiple indicators pulling double duty.

 

While I am not necessarily a fan of indicators, this is an important point.

Most indicators just replicate the same infrmation but in a slightly different format.

The one thing that does not change (for most of them) is the underlying instrument that it represents.

It is like looking at a map - it might be represented as a topographic map, a satellite image, a street view, a climate map.......

 

It is important to understand what you want to get, and what data you want to get it from.

Most indicatro laden charts you see, actually have similar things represented in different ways which is pointless......seems like they are going for confirmation of a bias rather than anything helpful.

[Obsidian 10]

hmm guess used too much magic..now what..can't see a thing:rofl:

[Tams 20]

While I am not necessarily a fan of indicators, this is an important point.

Most indicators just replicate the same infrmation but in a slightly different format.

The one thing that does not change (for most of them) is the underlying instrument that it represents.

It is like looking at a map - it might be represented as a topographic map, a satellite image, a street view, a climate map.......

 

It is important to understand what you want to get, and what data you want to get it from.

Most indicatro laden charts you see, actually have similar things represented in different ways which is pointless......seems like they are going for confirmation of a bias rather than anything helpful.

 

that's right... most of the indicators are a rehash of some sort of price averaging method, whether it be a simple moving average, or some other smoothing techniques. (Xavg, Wavg, LinReg, VWavg, MM, etc.,)

 

the 2nd degree indicators are the ones that use the above smoothed data, then further massaging it. Most of them present the end result as an oscillator. The most common example is the MACD.

 

The further you are from the real price (more degrees of processing), the further removed you are from reality, and the more error/delay/extrapolation you are dealing with.

 

Not all the indicators deal with price processing. e.g. trendlines and channels. They use price, but not necessarily processed price.

 

Some indicators do not use price at all. eg. your volume histogram subchart.