Which Indicators Do You Use?

[Pony 10]

I first started short-term trading with about $4000 about a year ago. I had good days and bad, ultimately loosing about two hundred fifty dollars. I only used candlestick indicators to determine when to enter and exit the market. My account eventually was suspended (thankfully) for becoming a pattern day trader without the minimal $25,000 in the account.

 

Anyway, I've recently become re-interested, and have been looking at bollinger bands along side candlesticks, which seems like it will be a lot more reliable than just the candlesticks alone.

 

My question being: Which indicator/indicators do you use to make trades, and what made you evolve into using them?

[forexfilms 10]

I also use candlestick patterns and some of my most profitable trades start with a simple candlestick pattern.

 

I also use RSI because I have found divergence on RSI to be one of the most accurate tools to make money off of trends losing steam.

 

I used to use MACD because divergence on it is also highly accurate but I think using MACD is just too slow.

 

I also use EMAs to make sure I stay with the trend (short/long on bounces off the EMA in favor of the trend.

 

Elliott Wave counts are also very important to my trading along with traditional technical patterns.

[Pony 10]

Thank you very much. That's exactly the kind of information I'm looking for. However, when you say MACD is too slow, I'm afraid I'm too knew to know what you mean. How would it be slower than the others? I'll definitely read up on how to follow those different types if indicators.

 

Anyone else?

[forexfilms 10]

MACD signals you to enter the trade long after the optimal entry therefore you make less money on the trade and take more risk because your stop would have to be farther away. It has the same problem on signals to exit the trade.

 

The biggest way to be successful (in my opinion anyway) is just basically keep trading and study charts and you will begin to be able to recognize patterns that are highly probable.

[MadMarketScientist 11]

You can use the VIX to understand risk in the market. The VIX can be viewed as the "investor fear gauge" index. It measures the volatility and fear in the market by tracking the implied volatility of at-the-money put and call options for a 30-day period in the S&P 500. When stocks go down, option volatility (VIX) increases as more options traders buy puts to either protect their stock portfolio, as an alternative to shorting, or to speculate.

 

Typically, a VIX below 20 means the market is complacent and investors are not concerned about the current outlook of the market. A VIX reading greater than 30 generally means that investors have become more fearful about the current state of the market and the increase in volatility is a result of the increase in investor uncertainty.

 

The further the VIX increases, the more panic there is in the market. The further the VIX decreases, the more complacency there is in the market. As a measure of complacency and panic, the VIX is often used a contrarian indicator.

 

MMS

[pbylina 10]

200 sma. Very good S/R.

[MadMarketScientist 11]

200 sma. Very good S/R.

 

as a short or long term trend indicator?

[pbylina 10]

as a short or long term trend indicator?

 

Umm...I dont really use it to show the trend direction. I guess you could. I would rather look at the slope of the vwap. I guess the 15min would be a good short term.

 

Put a 200sma on either a 15min or 60min chart and you will see some respect. 5min not so much...

[MadMarketScientist 11]

Umm...I dont really use it to show the trend direction. I guess you could. I would rather look at the slope of the vwap. I guess the 15min would be a good short term.

 

Put a 200sma on either a 15min or 60min chart and you will see some respect. 5min not so much...

 

so a 200sma on a price chart? what are you looking for with this indicator? crossing over\under? delta by a certain %?

[pbylina 10]

so a 200sma on a price chart? what are you looking for with this indicator? crossing over\under? delta by a certain %?

 

Hey are you by any chance SoulTrader? What happened to him...

 

Yeah price chart. You might also see sometimes 200sma converge with a daily pivot. Higher probabaliity. I just watch the tape.But Its nice to know were the 200sma.

[MadMarketScientist 11]

Hey are you by any chance SoulTrader? What happened to him...

 

Yeah price chart. You might also see sometimes 200sma converge with a daily pivot. Higher probabaliity. I just watch the tape.But Its nice to know were the 200sma.

 

No I'm not Soultrader - looks like he hasn't been around for awhile. I'll have to play around with the sma200 and daily pivots and try and figure out what you are looking for. Thanks for the tip.

 

MMS

[mslk 10]

Umm...I dont really use it to show the trend direction. I guess you could. I would rather look at the slope of the vwap.

 

according to the MIDAS system, the vmap subsequent to a reversal in trend is a major indicator of major change in market (trader) sentiment. this is one of their key chart predictors - mslk

[BlowFish 10]

according to the MIDAS system, the vmap subsequent to a reversal in trend is a major indicator of major change in market (trader) sentiment. this is one of their key chart predictors - mslk

 

VMAP? Is that a typo for VWAP?

[mslk 10]

VMAP? Is that a typo for VWAP?

 

yes sorry that was a typo ... i meant VWAP - mslk

[v101 10]

Good idea is to know understand the difference between leading indicators and lagging indicators.

 

IE for trade entry - do you want to use a LAGGING indicator?

for Trade Management do you want to use a LEADING indicator?

 

Ask your-self those questions, and then identify what indicators are leading, and what are lagging....

 

As you will no doubt find/know already the leading indicators help you to GET into the trade.. the lagging indicators help you to manage the trade, and LET YOUR PROFITS RUN, as the saying goes....

[Tams 20]

[BlowFish 10]

Good idea is to know understand the difference between leading indicators and lagging indicators.

 

IE for trade entry - do you want to use a LAGGING indicator?

for Trade Management do you want to use a LEADING indicator?

 

Ask your-self those questions, and then identify what indicators are leading, and what are lagging....

 

As you will no doubt find/know already the leading indicators help you to GET into the trade.. the lagging indicators help you to manage the trade, and LET YOUR PROFITS RUN, as the saying goes....

 

It's worth remembering that most 'indicators' that purport to lead price only do so (allegedly) based on assumptions that are pretty much false. Having said that things like trend lines or channels can project potential future turning points. (or even plain old S/R). Some might even argue that volume leads price (debatable, arguably a price will or will not attract volume).

 

I'd be interested to know what you consider 'leading'?

[Pony 10]

Well, I've recently learned that lagging indicators are not at all popular on here. But when I'm looking at an intraday chart, I have been looking at the macd, and essentially, I just wait for the lines to cross, whenever they do, I either short sell, or buy long. I should also mention that I look at the day trend as a whole, whether it should be going up or down that day, and put the two together for the best results. Is this a terrible strategy?

 

I should also mention that I have only traded stocks. I don't even have a clue how to get into futures, which were recommended as "stocks on steroids," plus you pay less tax on futures? I don't understand that, I would assume they would both fall under capital gains tax.

[BlueHorseshoe 10]

Hello,

 

I make all my trading decisions based upon a special proprietary indicator which I call 'XTradeCompass'. The code is a carefully guarded secret and I don't share the indicator with anyone. I use it as part of the following setups:

 

The Cash Cow

Six-Bar Dollar Catcher

Theta Breakout Scalping Strategy

The Sniper

 

I get hundreds of requests from traders wanting to buy this indicator but it's secret and proprietary as its our in house indicator and I only share it with those I know have the potential to suceed in this game. This indicator will NEVER be released to the public. You can see a video of me trading with this indicator on my website - a thousand micropips on options in single stock gold futures yesterday - SWEET! Please do not contact me asking to buy this indicator.

 

Hope that helps!

 

BlueHorseshoe

 

ps For more information about this indicator please contact me at bluehorseshoe@tradersgoldfutures.com

 

pps Please ignore anything you read about me on the SEC website - it's all lies and they're just jealous because they're not making the kind of RETURNS that I am.

[Jack Francisco 10]

MACD signals you to enter the trade long after the optimal entry therefore you make less money on the trade and take more risk because your stop would have to be farther away. It has the same problem on signals to exit the trade.

 

The biggest way to be successful (in my opinion anyway) is just basically keep trading and study charts and you will begin to be able to recognize patterns that are highly probable.

:helloooo:

hello Guys

I will share a simple strategy that I get from a friend and I hope more profit for you .

 

 

*strategy depends on 2 indicators :

 

1- KG Support and Resistance indicator

 

2- iMACD indicator with two lines

 

* we will use our strategy on 4 hours frame only .

 

*signal of buy:

 

1 - the green line intersects with the red line and the intersection under zero in iMACD indicator .

 

2 - after intersection happened look at KG Support and Resistance indicator , the price must be near the red support line which is a daily support and we will wait untill we see blue support line or 4 hours support then enter the market and sometimes we will see red and blue lines at the same price.

 

3- we have to co-operation together here to know target and stop

 

 

* of course signal of sell is the opposite of buy

[Obsidian 10]

... Is this a terrible strategy?....

 

if it is working for you, it can't be terrible...never mind what others do

[forexlady101 10]

Price, price, price... why make it more complex than that?? there's no need! really!

[Ingot54 13]

Price, price, price... why make it more complex than that?? there's no need! really!

You might be right forexlady101, but I have never been able to get "price" to work any better than any other indicator - leading or lagging - and I have about 10,000 hours of screen time between my ears.

 

There have been whole forums dedicated to price. And whole forums dedicated to the discussion of trading ... every member looking to participate in dialogue ... or lurking ... in a quest for an improved edge.

 

I only use one indicator - one lagging indicator ... and I am just as successful as ever

 

It is intriguing to see some traders' charts with many indicators ... sometimes even the same indicator repeated in a different window on the chart, using different settings.

 

I guess that must be working for them.

 

I won't nominate any particular indicator, because they all have something to show ... but generally, one must understand the indicator, and what it does.

 

Then one must M-A-S-T-E-R one strategy based on what that single indicator is revealing. Labeling indicators as "lagging or leading" just muddies the water for me - but I acknowledge good and successful traders (I am led to believe) use these to advantage.

 

It might be fairly safe to say that there may be many ways to skim the markets ... all the trader has to do is to become successful at ONE of them.

[stephensteve 10]

HI INGOT...GREAT THAT YOU ARE HAVING SUCCESS WITH ONE INDICATOR,

 

WHICH ONE...?????

 

I am sure we would be grateful for an insight to your style, how about another post with a bit more info.

 

Cheers mate, Steve

[Ingot54 13]

HI INGOT...GREAT THAT YOU ARE HAVING SUCCESS WITH ONE INDICATOR,

 

WHICH ONE...?????

 

I am sure we would be grateful for an insight to your style, how about another post with a bit more info.

 

Cheers mate, Steve

I could tell you ... but then I'd have to kill you! :rofl:

 

Seriously, Steve, if I told you, would you be the wiser?

Would you use it to your advantage, or just sample it for 10 minutes and discard it as a fail!

 

It is a part of a complete strategy, and it has different settings for different Time Frames.

 

I am a swing trader, aspiring to position-trading, so the indicator is suited to the longer TF. You can day-trade or even scalp with it.

 

But here is the hint - the success does not lie with the indicator ... rather, success is found using the multi-time-frame approach. The indicator is there just to confirm the TF are lining up ... and to show when thee is a pull-back.

 

You could use RSI - CCI - Stochastic - PSAR - MACD - or even a simple set of EMA's ... or the TDI. It doesn't matter. What matters is that you get things lined up for trend, and then identify a small pull-back, which is resuming its run with the other higher TF.

 

It's not difficult, and the higher the TF, the more forgiving it is of an error.

Further, the higher TF's rule, until there is a change in the trend, which will be identified in the smaller TF first.

 

It is not complicated ... but it is successful.

 

Do I need to expand on that? Hope it helps.