Today I am going to discuss something on Indicators. This is quite a controversy in the trading world. The short answer is No. The long answer? No No No No No. Just kidding.
Are Indicators Really Useless??
No absolutely Not!-Si Yuan Lim
Let me explain:
During the times when I was still trading retail methodology, ( Rising wedge, bullish pennet and the what not) Indicators really play a big part of my trading strategy. Without indicators it could be said that I could not trade,as indicators form the basics of which I know the direction of the market, when to enter,when to exit and so on.
When I started to know about supply and demand and price action I thought like what they said I was trading forex naked, indicators could no longer have any use, because all I need to know is in the candlesticks and supply and demand zones themselves. Yet, I found out that I still could not pinpoint where I should buy or sell.
The thing is Indicators play a supplementary role in supply and demand strategy too. There is such an indicator called supply and demand zones at tradingview.com . It colors the candlesticks that are supply and demand zones so that you do not need to find the zone yourself. It makes life easier for you as a trader.
Besides this, for me personally I use MACD, an indicator I use to gauge the turning point of the trends ( uptrend or downtrend) as well as VWAP, an intra -day indicator to see whether it is time to buy or sell in the market on a 1 hour time frame. It does not work on say if you trade on daily. When VWAP is CROSSING and ABOVE a candlestick you sell and if the opposite is true, CROSSING and BELOW a candlestick you buy.
Following is an example:
Of Course its not as simple as that ! 🙂 Trading is mostly about confluence, That means with a combination of VWAP supply and demand candles and MACD, hopefully you can trade. That’s basically all the Indicators I personally use currently.
In short, indicators do help just don’t rely on them look at the candlesticks use the indicators as a guide and you will be on your way to becoming a better trader.
Signing off for now!