Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Many indicators can do a decent job provided you know where you want to make business on a chart. A trading system using two moving averages can provide a viable solution when they cross each other but again provided it's done where demand meets supply in greater quantity or vice versa where supply meets demand in greater quantity. You will often hear the expression location-location-location. This variable i call location should not be underestimated. You should find a way to identify where key changes in supply and/or demand occur on a chart and test your indicator at these junctures. An indicator usually performs much better when price visits a prior qualified level of demand or supply.
Do you need an indicator to see these levels other than price alone, i'd say a big NO, you don't. Key changes in demand and supply occur where a change of volatility can be identified or when a market gets out of balance. These areas are where you want to make business.
Failling to qualify these areas as valid zones of demand and/or supply is an error too often seen in my opinion. So your first quest might be to improve your ability to detect such key changes in demand and supply on a chart.
Once you have identified where you too want to make business then adding an indicator to the equation can help you systemize an approach to take advantage of the remaining demand or supply left in the area in question.
All this to say, focus first your attention on the developing market context where key market participants have opened positions or are closing their positions then wait for price to vist these regions before considering trading. You may find this appoach slow as it is a reactionary (extremely conservative) or passive approach but this is a path that delivers high probability trade setups with high reward.
I would use the adaptable length regression tools that I created in an effort to automate. But they just don't match what you can do with a naked chart just reading the bars.
Favorite setup would be the European open trade combo usually with the e/u and 2 other pairs. But seriously, the market varies the approach to trip up the indicators.
