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How many indicators are on your charts?

  #79 (permalink)

Jacksonville, FL
Trading Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: E-mini ES S&P 500
Posts: 9 since Aug 2018
Thanks: 41 given, 21 received

AutomatedTrader View Post
Unfortunately, it will take most traders months and years to really understand, indicators are not needed. My opinion of profitable experience. They are very pretty on the charts, they do show you information, but they are lagging. Lagging meaning behind, not current. So, my question would be, how can you be ahead of the curve, when you're trading late information? All I use for trading is 3 simple bars, and I make a fortune. Indicators will ALWAYS limit your potential, no matter how much you make or don't make.

I get what you're saying and I respect that you are profitable trading this way. Let's not forget, however, that "3 simple bars" implies a chart. A chart is an "indicator." It is a two-dimensional representation of price by price, or by time, or by volume, or by delta, or by a combination of those, and like most "indicators" it's meant to rearrange the output of the tape (also lagging, by my understanding of your definition) so that we humans process the data more efficiently (less lag).

I tip my hat to those old-timers who can trade just by the tape. That means price action only, i.e. the last printed trades flowing past WITHOUT colors as to whether they went on the ask or bid, or filters for slowing down the rate to only block trades or trades above a certain number of contracts, etc. Adding colors, blocking out noise, etc. are also "indicators" applied to the raw tape output, so to a purist they'd be out. I actually tried this for a while. I simply could not stay focused long enough, probably because I'm not Rainman or his equivalent.

It's the rare trader--and again, I'm not mocking, I'm complimenting--who needs "no indicators." I'm certainly not one of them so a tip of the hat to you, too.

BTW, one small nit to pick: Nobody is ever "ahead of the curve." Why? Because humans have yet to develop a capability to predict the future. There is no curve to "be ahead of." And thus, money management is as important as being able to read prices. Given your experience, I'm sure you know that and it was simply poor wording. Again, not a criticism--you were clear in what you wrote, I got what you meant, and an internet blog post is not a doctoral thesis.

Last edited by Mailmon; October 4th, 2018 at 06:14 PM.
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