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Old 02-04-2008, 02:19 PM
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David Waring David Waring is offline
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Quote:
Originally Posted by pjethwani View Post
Hi David,

thanks again for the answer...

so continuing further from your response ...

wouldn't technical indicators like MACD, ADX etc. become less and less effective with time as everyone knows about them?

sorry I am very new to trading, so I don't know the different between a Trading System and Technical Indicators. May be I am missing something fundamental.

- Paras
Hi Paras,

Good question. A trading system is any set of rules for entering the market, managing a position once you are in the market, and for exiting the market. While certain indicators can be used as trading systems for the most part they were designed to be used as part of a trading system and not a stand alone system. In other words they are there to give you an "indication" of some part of the market such as trend or momentum in the market.

This is why if you notice in my videos I constantly talk about confirming your trading decisions with different pieces of analysis and not just using one thing.

Hope that helps.

Best Regards,
Dave
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