Received the below question on the InformedTrades.com trading blog which I have answered there but I thought I would also add a thread on the subject here in case anyone had any additional thoughts they would like to share on the subject. Below is the question and my thoughts.
The Question
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What are yr favorite indicators David? And can I be so nosy as to ask if you have tracked success rate?
Thanks tom
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My Answer
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Hi Tom,
Thanks for the question. There are times when I have used all of the indicators that I cover in my video lessons on indicators but if I had to choose favorites I would say the stochastic and the ADX are my favorite. The stochastic because it gives a good picture of how overbought or oversold the market is and the ADX because when plotted with the +DMI and the -DMI it gives a good picture of the strength of the up forces in the market and the down forces in the market.
My opinion is that indicators should only be one part of any strategy so no I have not tracked the success rate of the indicators as they are used simply as a guide and not as buy and sell signals by themselves.
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If anyone else has thoughts on what indicators work the best for them I would appreciate you sharing them with the community below.
Best Regards,
Dave