Is Price the Best Indicator?

[chartwaves 10]

Hello everyone, I always see traders looking for a miracle indicator or oscillator for perfect entries and exits. I think if such a thing did exist then who ever owned it would keep it very secret, because the more common a system or indicator is the more the advantage will start to fade. From my experiences I have found that price action is the absolute best indicator with volume being number 2. What better indicator do we need than seeing price jump over past highs, or price falling to new lows to help us gauge strength/weakness? What do you guys and gals think?

[steve46 12]

The way skilled professionals look at the market is much different than retail

 

I guess the best way to begin is to cut to the chase....Price itself is a lagging indicator.....once you understand why this is the case, it is relatively easy to come to the conclusion that "indicators" are even less important (assuming you want to be something more than a "sacrificial lamb" in the markets).

 

Now I am not suggesting that you give up the use of indicators, but, I do think of them in a different context...for my work, indicators (the few that I use) are only for visualization and to provide a comparative view of how the various markets are performing. From my point of view, on an individual basis, they simply don't provide a consistent idea of where money is going, and by the way thats what markets are about (the decisions that people make to put money to work)....

 

Once you understand the real basis of price movement, then you begin to look for other reasons to trade. Personally I use a combination of price and time, and my understanding of how institutions make decisions.

 

To be fair, this is my bias (I was trained this way and it works for me), it is just one of many ways to make money in the markets. I cover some of the details in my previous thread about institutional trading.

 

Best Regards

Steve

[tradingwolves 10]

Chartwaves,

 

With all the websites that I have looked at looking for the same kind of signaling for the "indicator or oscillator for perfect entries and exits" I have only found one. That was giving to me by a friend. The site that was given to me was directionlabs.com. i was also looking at fxcm.com. I like both sites, the reason why one shows the entries and exits and one is more based on trends.