Hi all,

Found when browsing, an indicator usefullness ranking on forex trading:
- simple moving average: 5
- exponential moving average: 6 (out of the box), 9 (when properly modified) (me: dunno, don't ask me)
- bollinger band: 4
- parabolic sar: 6
- rate of change: 6
- RSI: 4
comment: (not from me)
this indicator does not adapt quickly enough in fast moving markets, resulting in several false signals.
- stochastic: 3
comment: (also not from me)
this is one of the most overused indicators, along with MACD.
Both are good for looking at long periods of time, and excellent for selling useless software because they clearly show “strong” buy and sell signals. The problem is those signals are all viewed in retrospect.
- momentum: 2
- MACD: 2
Comment: nearly all new traders use some sort of MACD/oscillator
combination. The fact that only about 3% of new traders are successful after their first year tells the story of how useful this indicator is. The crossovers are too difficult to call, there are simply too many false signal.
Comment: (this time from me), ahh ... I use MACD a lot
- ADX: 2
- William %R: 2

Be carefull using indicator, any comment?

cheers,
ellict

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VPS for Trading

I'm prefer SMA and stoch plus zigzag stoch is good indicator for oversold and overbought level

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Forex Indicators Collection

ZigZag almost doesn't have prediction value, but it's fine to draw a wave/correction wave/elliot wave using zigzag, filter stoch with impulse system was a good idea

__________________
VPS for Trading

I love blonde, you may prefer brunette.İt is all depend on your taste.

"IT'S NOT THE TOOL, IT'S HOW YOU USE IT!"

The debate over indicators is entertaining.

Traders forget that price is the INPUT to indicators and NOT the output.

Price does not care what the indicators say it should do.

Indicators show what the price did.

That's why I like to use HORIZONTAL LINES and trade when the prices touches/crosses the line.

It really doesn't matter where you place the line because either price penetrates or bounces. Whether it's open price, close price, support/resistance, fibs or Murray Math, it's still a horizontal line that doesn't move. IT IS THAT SIMPLE!

I like to use "gauges" rather than indicators because I want to know what is happening NOW, because one trades in the moment, not the past. My gauges tell me real time statistics so I know if price is pushing the limit. Also, it is quicker to interpret my gauges than it is indicators on charts. One look and I know what price is doing on 8 time frames. Beats looking at 8 charts with all of those SQUIGGLY LINES.

Yes, gauges can be considered indicators - there are similarities. But it is the differences that make all the difference.

The other thing about indicators is how many occupy space on the chart.

Some traders have so many indicators that you can't see the price!

It is better to learn and master how to use ONE INDICATOR. "BEWARE THE MAN WITH ONE GUN... HE PRACTICES WITH IT!"

I know that may sound funny coming from the guy who has coded hundreds of indicators. But just because I code them, it doesn't mean I use them.

My trading screen is simple. It has a few horizontal lines and a couple of my DIGITAL COMPASSES/GAUGES.. That's all I need. But others like different indicators so I code them because I can. It's how I learn new techniques - I can't code what I don't understand.

I just don't think you can say it much better than that!

almost?

Thanks, Brunite. Compliments are hard to come by on this forum.

I appreciate you taking the time to post. Thanks again.

how many people, schools and methods - so many approaches and opinions
whatever works 4 whom - indicatorless trading, 4expl - also proven method

that's the beauty of the forums (good forums) - to have diversity (variety)and see subject from different points of view

I would like to read that list in its original form, exactly as written by the author. If I knew what the author's publishing site was, I also might be able to find other interesting stuff there.