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Podcast:
How many indicators should you use?
In this weekly video:
00:26 – Most traders use indicators incorrectly
01:51 - Why do you use all of those indicators?
03:26 – Forex indicators and how they can help the trader
04:38 – Pivot points and Support & Resistance levels plotted automatically
05:09 – I don’t like most indicators
06:10 – Don’t clutter your charts
How many indicators should you put on your charts as a Forex trader? Let's talk about that and more right now.
Hi, Forex traders. Andrew Mitchem here, The Forex Trading Coach video and podcast 287.
Most traders use indicators incorrectly
We're going to talk about indicators. Most people use indicators in the wrong way, and most people over-clutter their chance with indicators. They cause confusion and when you start you like to see lots of nice arrows and lines and things on your charts because you think that's what you need to put on your charts in order to give yourself an understanding of what's happening in the market. Now, pretty much that's not true, but, unfortunately, that's the process and the journey that most people, including myself when I started, go through as a Forex trader.
You soon start to realize and discover that most indicators out there aren't actually much good. And you'd know if you'd been listening or watching me for many years, that you'd know that I generally say that I'm not a fan of most indicators out there. Lots of reasons why. The confusion side of things, they lag what's already happened. They tell you what's happened in the past. Most indicators don't really give you much of an indication of what's likely to happen. They all sort of make some form of average over what's already happened. Well, that's too late. People get confused with an indicator saying a buy on this timeframe and a sell on that timeframe. So that causes confusion.
Also, when you actually look into the history of most indicators out there, most of them were written well before the mainstream Forex market was even ... so that people were using them on MT4 platforms, et cetera. So most of them were written for other markets than the Forex market.
Why do you use all of those indicators?
But then, last week somebody wrote a comment on I think it was YouTube, on one of my posts, and said, "Hey, Andrew. You're always telling us you don't like indicators, yet your charts here are full of indicators. What's going on?" Really easy response and reply to that. Well, I find what I use useful. It's the software that I provide to my clients with my coaching course.
But think about it this way, when you're driving a car and you've been driving for any length of time, you know how fast you're going, pretty much. You can tell what speed you're going, roughly, within a few kilometers. If you've got your lights on, you know you'd need your lights on because it's dark. But there's a light inside on the dashboard telling you that you've got your lights on, or the beams on. There's a light in there telling you when your wipers are on. Well, you can see because it's raining and your wipers are moving. But there's still a light there telling you things like that. There's a line there or a needle, dial, moving up and down with the revs that you're going through. Well, if you're revving with your foot down on the pedal, you can hear that the engine's revving faster or you're going uphill. So you kind of know that.
If you're in a manual car or an automatic car and you're changing gears or it does it for, you kind of know what gear you're in. You're on open road, cruising along as the 100 kilometers an hour, you know you're probably in top gear. But there's something on your car that tells you. Why does it do it? Well, it helps to give you an idea of what's happening. It takes the pressure and the workload off the driver. All things like that.
Forex indicators and how they can help the trader
And so, really, -
"Backtesting trading strategies does not work!”
Got your attention?
Maybe you agree with this statement.
Perhaps you strongly disagree and you’re currently heading out to the backyard to grab your pitchfork.
Or maybe you’re shaking your head thinking ‘what the heck swanny, have you finally lost it man?’.
Well, the good news is I haven’t lost it (yet). We're going to dive deeper into this statement in the podcast episode today.
But first, I'd like to introduce our guest - John Ehlers.
John is a friend of the show. He’s been a guest multiple times, discussing topics such as cycles, indicators and digital signal processing. In our chat today we’re going to tackle robustness and also intraday trading.
Some of the things you’ll hear on the show today are:
The startling differences between intraday and daily timeframes and the critical factors you need to watch out for, Why it’s more difficult to predict where market prices are going on an intraday basic compared to daily timeframe, and how you need to think about intraday data differently, We’ll be digging deeper into this “Backtesting trading strategies does not work” statement to find out what it means, How to use a simple Genetic Optimization trick to determine the robustness of a strategy How Genetic Optimization can be used to identify suitable ranges for optimization parameters Why short walk forward periods could be better than longer, Plus a whole lot more.So lets jump over to my chat now with John Ehlers.
Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results. -
Welcome to Ledger Cast, hosted by me, Brian Krogsgard (@ledgerstatus on twitter), and Josh Olszewicz (@carpenoctom). Ledger Cast is a cryptocurrency trading and blockchain ecosystem podcast.
You can subscribe to new episodes of Ledger Cast on iTunes, on Google Play, on Stitcher, on YouTube and via RSS.
The information in this podcast should not be construed as investment advice, it is purely educational material and you should always do your own research before buying.
In this episode of Ledger Cast, Josh and I discuss the state of the bear market, how we're approaching trading both bitcoin and alt coins, and of course our take on what's ahead. Part of our discussion was around some of the coins that are outperforming the market -- either by consolidating around higher levels or even maintaining uptrends. They are few and far between.
We also discuss our upcoming live show in Washington DC for those of you interested. And in the middle of the show I take a moment to talk to Aaron Lammer of Coin Talk -- one of my absolute favorite podcasts in the space that I hope you'll check out.
Links from the show Josh's article on the Q2 Bearish Boogaloo. Josh's price action article, including his "too perfect" Wyckoff chart.Bloomberg article on all the dead crypto projects -- mostly ICOs. EOS tracker and the low number of transactions. AureliusBTC and his thread on CME volume contracts vs dollars.Find Josh and Brian elsewhere Josh's articles on Brave New Coin (must read material) Josh's YouTube channel (His Ichimoku series and Indicator series are especially great) Josh on Twitter @carpenoctom Brian on Twitter @ledgerstatusPartner: DeltaDelta is the app I personally use to track my bitcoin, altcoin, and even ICO investments — for multiple portfolios. It's available on desktop and mobile, supports 70+ exchanges, and is the best portfolio tracker there is. Get Delta For FreeDelta has an awesome new version of their app, which you can read about on their Medium. It's great, with new viewing options, and a portfolio sharing feature.
Music: "Oh, the chains" by Joel Madison Blount
