The practice is misunderstood by many.
Forex Trading with indicators is counterproductive for most traders . Reality tells us that indicators are based on the past. Those advocating their usages are disciples of the history repeats itself .
The psychology behind the 200 day period average is strong as are many others. The Fibonacci wave retracement and breakout percentages are used daily. If you have not traded very long you would think when you are reading about how to use a particular indicator you would believe most are equivalent to the holy grail. Indeed there are times when they do work as advertised and taught.
I am not trying to upset those who are successfully using any independent indicators as our traders use them as well but only as a confirmation of our 8 step ES algorithm . What I have to say is opposed to how they were taught to trade.
Often times people do things just because it is how it was always done. This type of thinking can keep you blind to new realities and possibilities. When it comes to trading the Forex market, I do not “rely ” on any single indicator. I don’t even use a single moving average. I find that this is the best way to trade and I will tell you why.
Trading without reliance on any single technical indicators is the best way to trade. It is the best way to trade because indicators do not work. Yes, I just said, “indicators do not work.” Please excuse my language, they just simply suck and are a waste of time. It has taken me about 6 years worth of trading to come to this reality. Like most new traders and old traders alike, I have tried just about all the technical indicators that are available. I’ve even bought specially made indicators and those are awful too.
Why do technical indicators not work? Technical indicators do not work because they are doing either 1 of the 2 things:
(1) They try to predict the market.
(2) They provide information based on old price action.
A technical indicator that tries to predict the market is failure in a box. It is impossible to predict the market in anyway and using a technical indicator to do so is a fools errand. Please do not be a fool.
Technical indicators that use old price action and data can only tell you what has happened not what will happen. This is most technical indicators are garbage.
There are people selling $10,000 dollar trading systems built off technical indicators. Those guys are getting rich from people paying them $10,000 for junk and not from their ability to trade the market.
There are not any magic tools that will make you a winning trader. The only thing that will make you a winning trader is time in the saddle and time in front of a screen watching the market. Nothing else can substitute for getting your own feel of the market and how things conspire to make the market move in either direction.
As you can see, technical indicators do not work and they are a waste of time. Forex trading systems based off of technical indicators are a scam that are created to only make the seller of such systems rich and not you. There are no short cuts to Forex mastery, you will have to work hard and dig out your own trading strategies, this is how all good traders become great and how bad traders become good. Make a choice today to put in the necessary work to master the task of trading the Forex marketing without using wasteful indicators.
