Forex Charts Best Indicators?

trisikad · 06-08-2009, 07:48 PM

Hi All,

Playing with FXCM's Demo Account and Marketscope 2.0 Charts. Just wondering what indicators you apply to the charts that will help you most with technical analysis? I have used Bollinger Bands, EMA, ADX and RSI.

Tekmnd · 06-08-2009, 08:28 PM

Hi trisikad

I use different indicators for different things.

First thing is that I usually have 4-6 charts open at the same time, but on top of each other so I can only see one at a time. One one chart, I just have the price graph so I can see it clearly. I usually spread the indictors out over 3 other graphs, and then I have a graph or 2 open of other pairs to keep an eye on them

For trend trading, I use a couple of MAs for reference. I have RSI on a graph but really haven't been using it much lately. I enter the trade on retracements using fibonacci.

For range trading, I use a couple of MAs for reference. I use 3 sets of bollinger bands set to 2, 3 and 4 standard deviations. I also use slow stochastics that I change the settings on slightly (I can't remember the setttings off the top of my head, but default would probably be as good anyway).

Lately, I have been trading using sentiment. I have a post on that here-
FXCM's Specualtive Sentiment Index

Cheers
Tek

trisikad · 06-08-2009, 08:34 PM

Thanks Tek for your input. I find the ADX somewhat more useful in predicting the continuation/strength of a trend.

forexer · 06-08-2009, 10:26 PM

Hey there,

I can tell you you can trade fairly profitably by just using a moving average, common sense and good psychology and money management. I have found that when i quit using indicators 2 months ago, i trade better with a piece of mind.

Nevertheless, its your choice although there are some good and bad indicators.

Forexer

advfn2828 · 06-09-2009, 12:52 AM

Quote:

Originally Posted by trisikad

Hi All,

Playing with FXCM's Demo Account and Marketscope 2.0 Charts. Just wondering what indicators you apply to the charts that will help you most with technical analysis? I have used Bollinger Bands, EMA, ADX and RSI.

I would say that EMAs are probably the most used and therefore the most likely to be successfull particularly 100 and 200 period EMAs as larger insitutions watch these levels. That said I have 21 and 55 period EMAs on my charts as they are respected quite a bit too, particularly in strongly tredning markets (I am refering to Forex, but dont see any reason for this not to be true in other markets).

Generally I use EMAs as Support and Resistance lines, but also as an indication of trend strength overall. I have never yet traded an EMA crossover, although some will say that is a good opportunity.

As far as other indicators I have RSI Stochastic and MACD on the charts and BB, but none of these are used to enter trades - I tend to use price structure and trend lines to tell me when a trade is likely, and may refer to the indicator for confirmations. Or indeed to warn of possible reversals if in a trade already.

That said, RSI and Stochastic over bought/sold, and trending in line with daily trend and MACD with same directional bias would be a strong combination.

Personally, if I had my time again, I would strip the charts bare, focus on what price is doing with S&R and trends, and only add indicators for confirmation. But now I just doesnt feel right to have a clean chart LOL.

Hope that is of some help

Graeme

DREBG · 06-09-2009, 10:46 AM

Quote:

Originally Posted by advfn2828

Personally, if I had my time again, I would strip the charts bare, focus on what price is doing with S&R and trends, and only add indicators for confirmation. But now I just doesn't feel right to have a clean chart LOL.
Graeme

Graeme-

THIS is exactly what I am trying to "retool" in my trading! I have become quite a fan of price action and very few indicators. So far so good- the absolute BEST trading I have EVER done is the last few weeks after some trial and error in using pattern recognition in raw price action.

The best indicator I have besides price action itself is an Inside Bar indicator that puts a simple blue line through any inside bar to help recognize price patterns. I also have a Pin Bar indicator that puts a small yellow dot above/below any defined Pin Bar- just for quick visual reference.

I think I will be able to "shake" the indicators madness I had been so wrapped up in for so long. It's hard, though. I do still add them to my charts for confirmation etc. but then remove them right away. S/R and TL's are givens- I don't really consider them as "indicators" per sae.

Don't get me wrong, I'm not indicator-free. I still use FX Boot-camp's setup of 21/55 EMA's, 5 EMA/8 SMA (a great cross for exiting trades), and the underlying trend in the 200 SMA. I also think pivots are critical too. I also keep a heat-map in the corner of the chart just to see how one currency is fairing against another. I'm still amazed at how effective playing (or confirming) stronger currency against a weaker one (straight from the heat map) really is!

Additionally, I"ll sometimes add in ARROWS ONLY for ADX crosses and Stoch overbought/oversold (shows when it drops from 80 or goes above 20).

Here a Chart Template Before and After:
---------------------------------------------------

BEFORE:

As you can see, at its height some time ago, my indicator paranoia had reached dizzying heights of confusion! I was the poster child for analysis paralysis. I keep this template to remind me how far I've come!

... AND AFTER:

I can't tell you how much clearer my mind is working with cleaner charts! Price Action is the ONLY action!

Good luck...

forexer · 06-09-2009, 11:27 AM

Quote:

Originally Posted by DREBG

Graeme-

THIS is exactly what I am trying to "retool" in my trading! I have become quite a fan of price action and very few indicators. So far so good- the absolute BEST trading I have EVER done is the last few weeks after some trial and error in using pattern recognition in raw price action.

The best indicator I have besides price action itself is an Inside Bar indicator that puts a simple blue line through any inside bar to help recognize price patterns. I also have a Pin Bar indicator that puts a small yellow dot above/below any defined Pin Bar- just for quick visual reference.

I think I will be able to "shake" the indicators madness I had been so wrapped up in for so long. It's hard, though. I do still add them to my charts for confirmation etc. but then remove them right away. S/R and TL's are givens- I don't really consider them as "indicators" per sae.

Don't get me wrong, I'm not indicator-free. I still use FX Boot-camp's setup of 21/55 EMA's, 5 EMA/8 SMA (a great cross for exiting trades), and the underlying trend in the 200 SMA. I also think pivots are critical too. I also keep a heat-map in the corner of the chart just to see how one currency is fairing against another. I'm still amazed at how effective playing (or confirming) stronger currency against a weaker one (straight from the heat map) really is!

Additionally, I"ll sometimes add in ARROWS ONLY for ADX crosses and Stoch overbought/oversold (shows when it drops from 80 or goes above 20).

Here a Chart Template Before and After:
---------------------------------------------------

BEFORE:

As you can see, at its height some time ago, my indicator paranoia had reached dizzying heights of confusion! I was the poster child for analysis paralysis. I keep this template to remind me how far I've come!

... AND AFTER:

I can't tell you how much clearer my mind is working with cleaner charts! Price Action is the ONLY action!

Good luck...

Haha another dude who loves price action. I already can't stand your charts lol so you can imagine how neat mine are. Indicators are based on price after all. They just use mathematical calculations to analyze price. I still trust my grey noodle up there more

Forexer

advfn2828 · 06-09-2009, 03:59 PM

Quote:

Originally Posted by DREBG

Graeme-

THIS is exactly what I am trying to "retool" in my trading! I have become quite a fan of price action and very few indicators. So far so good- the absolute BEST trading I have EVER done is the last few weeks after some trial and error in using pattern recognition in raw price action.

The best indicator I have besides price action itself is an Inside Bar indicator that puts a simple blue line through any inside bar to help recognize price patterns. I also have a Pin Bar indicator that puts a small yellow dot above/below any defined Pin Bar- just for quick visual reference.

I think I will be able to "shake" the indicators madness I had been so wrapped up in for so long. It's hard, though. I do still add them to my charts for confirmation etc. but then remove them right away. S/R and TL's are givens- I don't really consider them as "indicators" per sae.

Don't get me wrong, I'm not indicator-free. I still use FX Boot-camp's setup of 21/55 EMA's, 5 EMA/8 SMA (a great cross for exiting trades), and the underlying trend in the 200 SMA. I also think pivots are critical too. I also keep a heat-map in the corner of the chart just to see how one currency is fairing against another. I'm still amazed at how effective playing (or confirming) stronger currency against a weaker one (straight from the heat map) really is!

Additionally, I"ll sometimes add in ARROWS ONLY for ADX crosses and Stoch overbought/oversold (shows when it drops from 80 or goes above 20).

Here a Chart Template Before and After:
---------------------------------------------------

BEFORE:

As you can see, at its height some time ago, my indicator paranoia had reached dizzying heights of confusion! I was the poster child for analysis paralysis. I keep this template to remind me how far I've come!

... AND AFTER:

I can't tell you how much clearer my mind is working with cleaner charts! Price Action is the ONLY action!

Good luck...

Hi Dave

That first MT4 chart looks like one of my first efforts!! Are you sure you wasn't looking over my sholder ;-)

The trade I did today was pure price expectation, but still referenced divergance to confirm my bias.

I really dont think I will ever shed them completely, but stranger things have happened!!

I am glad the change is working for you

Regards

Graeme

Don1987 · 06-10-2009, 10:12 AM

You are the best indicator. Take care

trendisyourfriend · 06-10-2009, 04:38 PM

DREBG,

Would you mind telling me where i can get the price meter indicator as i would like to check something. The one i found on the web does not work at all on my MT4 platform.

And by the same token, where can i get the divergence indicator ?

Thanks.

P.S. indicators are great if you know what type of movements you want to capture. You can refine your analysis and catch more nuances with them than without them. They work for you not the opposite as many seem to believe. I just could not trade as effectively without them.

06-08-2009, 10:26 PM	#4 (permalink)
forexer Badges About Assets Badges Showcase Total Awards: 1 Join Date: Jan 2009 Location: Singapore Posts: 1,409 InformedPoints: 120.96 Funds	Hey there, I can tell you you can trade fairly profitably by just using a moving average, common sense and good psychology and money management. I have found that when i quit using indicators 2 months ago, i trade better with a piece of mind. Nevertheless, its your choice although there are some good and bad indicators. Forexer __________________ Time must be used Very Prudently

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06-08-2009, 08:28 PM	#2 (permalink)
Tekmnd Community Co-Host Badges About Assets Badges Showcase Total Awards: 3 Join Date: Aug 2008 Location: San Diego Posts: 2,228 InformedPoints: 12,963.18 Funds	Hi trisikad I use different indicators for different things. First thing is that I usually have 4-6 charts open at the same time, but on top of each other so I can only see one at a time. One one chart, I just have the price graph so I can see it clearly. I usually spread the indictors out over 3 other graphs, and then I have a graph or 2 open of other pairs to keep an eye on them For trend trading, I use a couple of MAs for reference. I have RSI on a graph but really haven't been using it much lately. I enter the trade on retracements using fibonacci. For range trading, I use a couple of MAs for reference. I use 3 sets of bollinger bands set to 2, 3 and 4 standard deviations. I also use slow stochastics that I change the settings on slightly (I can't remember the setttings off the top of my head, but default would probably be as good anyway). Lately, I have been trading using sentiment. I have a post on that here- FXCM's Specualtive Sentiment Index Cheers Tek

06-08-2009, 08:34 PM	#3 (permalink)
trisikad Badges About Assets Join Date: Mar 2009 Posts: 20 InformedPoints: 0	Thanks Tek for your input. I find the ADX somewhat more useful in predicting the continuation/strength of a trend.

06-10-2009, 10:12 AM	#9 (permalink)
Don1987 Badges About Assets Join Date: Jun 2009 Location: Mississauga Posts: 63 InformedPoints: 0	You are the best indicator. Take care

06-10-2009, 04:38 PM	#10 (permalink)
trendisyourfriend Badges About Assets Join Date: Aug 2008 Location: Quebec, Canada Posts: 788 InformedPoints: 27.77 Funds	DREBG, Would you mind telling me where i can get the price meter indicator as i would like to check something. The one i found on the web does not work at all on my MT4 platform. And by the same token, where can i get the divergence indicator ? Thanks. P.S. indicators are great if you know what type of movements you want to capture. You can refine your analysis and catch more nuances with them than without them. They work for you not the opposite as many seem to believe. I just could not trade as effectively without them.