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Hey everyone, so recently I've been trading with only the DOM and supply and demand zones, and let me tell you my trading has improved ten fold. maybe it just me but whenever I would run an RSI or any moving averages I feel that it clouds my judgement and often times the information is lagging/wrong. Watching the order flow and seeing where big buying levels and selling levels are in REAL TIME improves my entries. when I first started trading I used every indicator known to man, the one that truly influenced big drawdowns was the fan favorite FIBINOCCI, maybe its just me but I don't see how someone can use this and succeed long term. Now this isn't to talk down on anyone using them because at the end of the day there's many ways to skin a cat and if you're achieving consistency then it works for you. let know what you guys think.
Agree with you on the common indicators that are generally calculated based on past prices and past volume.
I also scalp futures based on Orderflow data, but I do use indicators.
My point is if you write off all indicators then your mind is closed and are doing yourself a disfavor. To me, a much broader definition of an indicator is an automation tool. It analyses the data being fed and also harnesses the computing and memory powers of the computer that the human eye and mind cannot match. In this algo age, manual trading is definitely at a losing end. If the mind is closed, then this gap can only widen as technology progresses especially as AI is advancing so much.
My indicators can help highlight absorption areas (from Orderflow data) and also help me to manage risk by auto entry, auto position sizing, breakeven and chase.
Regards to automation tools I don’t think I’ve ever really use them, I definitely believe that automation and Algo does have its advantages. I think moving forward may be trading manually, but also using Algo trading could set you apart. But if everyone is using automation to trade then wouldn’t the manual trader have an advantage? I’d definitely would love to get more insight on Algo.
I use the DOM as well. Been trading for about 15 years and the first 5 years of my experience I searched for and used many indicators on charts. The conclusion I have come to is most indicators can not produce edge much better than the flip of a coin. If you use an indicator that produces an edge in the market, I commend you, you have done something that I could not do. However I do use the MACD to help me identify a trend, but that is about it for me. Happy trading,
I scalp, exclusively. My risk tolerance level is very low. Hence I use a few (very) popular indicators that indicate to me what a significant portion of retail traders are looking at, at any given moment.
Agree with S&D zones; use Bookmap for DOM + orderflow visualization. Only indicators I use are VWAP bands.. insanely useful for me, especially when they corroborate S&D zones + volume.
If you aren't trading based on volume or DOM, then you are guessing...period.
That said, indicators for me help recognize from a distance that a potential set up might be occurring as I leave the computer on all day and wander around programming and doing things. Mostly I use moving averages or daily high/low/open/close/POC lines. I also use VWAP and the standard deviation lines (more to watch than use for entries). While you CAN use a naked chart and volume, and do extremely well, I mostly use indicators to have a graphic representation as to where we are and where we've been in relation. Sometimes that's difficult to visualize without them.
With that, I feel something like an oscillator or such is totally worthless. Who needs a wavy line based on price when I can see price? I suppose the same thing can be said for moving averages...so maybe I'm off base here. I guess the moving averages are just easier visually for me.
After seeing that there is a potential set up, I come sit and watch the volume and decide if I'm going to enter or not.
Indicators do not give you entries. Indicators give you an idea an entry may be getting ready to happen.
