How many theories and (or) indicators do you need?

Discussion in 'General Forex Discussion' started by DenTe, May 11, 2016.

  1. DenTe

    DenTe Trader

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    I spend a lot of analytical work before the opening of transactions, because I try to share my knowledge on the forums. The basis of the analysis I use the theory of Elliott. But I never guided by only one confirmation of the forecast. I believe that the way to forecast accuracy is through the correct combination of strategies and indicators. So often I use trend theory, candlestick patterns, Stochastic, Moving Average, Fibonacci.
    How do you think? If you combine, how many and what methods you combine?
    I will be glad to know your opinion.

    Den
     
  2. Enivid

    Enivid Administrator Staff Member

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    I rarely combine two or more technical indicators to confirm a trading signal. Most of the indicators are based on the same price data - adding them together does not increase accuracy but instead adds lag to the combined signals.
     
  3. myfxpt

    myfxpt Master Trader

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    I like to keep it simple. Price action, SR and Trend lines, viewed over multiple time frames, i.e. Monthly, Weekly, Daily, and 4-hour. Longer time frames tell me about price direction and key SR levels, and shorter time frames tell me when to enter/exit. It's about 70% accurate.
     
    MartinBa likes this.
  4. MartinBa

    MartinBa Trader

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    My trade strategy based on the trend theory with determination of The significance and potential levels. And use diff. tf for determinate the main dirrection and his stage.
     
  5. radex78

    radex78 Active Trader

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    In trading usually I am not use too much indicator, most analysis still based on candlestick pattern and price action, I like with this way to analyze the trend market than using indicator because more simple in my view, using indicator also need discipline to obey rules indicatir and if fail can't blaming indicator
     
  6. DenTe

    DenTe Trader

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    I caught your point of view. But, for example, the fact that I combine several methods of analysis gives me psychological support, if all methods show the same thing. Conversely, if, for example, the Elliott theory show one thing and patterning - is quite another, I will refrain from trading. Less risk of falls on my account. I also want to note that different methods of analysis of the market have different accuracy. For example, determining the levels using Fibonacci, you can achieve higher accuracy than just draw a trend line.
     
  7. DenTe

    DenTe Trader

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    Yes, of course, the most important risk management in trading. It is rule for earnings.
     
    Timothy Forex Mart likes this.
  8. myfxpt

    myfxpt Master Trader

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    This makes sense. If multiple indicators conflict, stay out. Comparing time frames is another way to look for signal conflict. Whatever works best for the individual trader, I guess!
     
  9. radex78

    radex78 Active Trader

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    I don't like usng many indicator in my trades, but might for certaiun trader they like use few indicator forex and it help much tro built up self confidence, might experience will giving us more lesson what kinds indicator that giving best signal
     
  10. radex78

    radex78 Active Trader

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    Many theory in forex business and maybe one theory that very popular is ellioth wave which this theory will learning about wave that occur on the market that often repeaating certain pattern
     
  11. Twin butterfly

    Twin butterfly Active Trader

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    It all depends on your strategy how you work with it in Forex. I use 3 or 4 indicators for my Forex system to get the perfect trade for a day.
     
  12. radex78

    radex78 Active Trader

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    SInce I am as beginner still like with trying kinds indicator from third party that in chart seems very good in view, but sometime use indicator can making platform being low responding and it will disturb trading activity because often will open and closed manually but platform stop to responding
     
  13. aqibFXmart

    aqibFXmart Trader

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    I like most traders. I prefer to rely on trend and trading only slightly indicator, an indicator that I am setting a long-term, the trend toward more visible. and I use Ichimoku indicators and factal.
     
  14. jellyeb

    jellyeb Active Trader

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    I use MACD to check exceptional divergence and that's it, the rest is basic S/R, impulse and news. That's all tools I use in my trading.
     
    Navigation FX likes this.
  15. radex78

    radex78 Active Trader

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    I am not use ichimoku, but I am ever reading if this indicator already as complete indicator and can used to preidict movement ahead because cloud will always show in from of the end candle, but I like simple trade with price action now
     
    Navigation FX likes this.
  16. nikita sharma

    nikita sharma Trader

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    though indicators are significantly important yet i do not use more than 2 indicators at a time
     
  17. Mohdfx

    Mohdfx Active Trader

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    I use moving averages sometimes with price action and it is enough for me.. I don't know if it's fully right, cause I trade for less than a year at the moment. But I have more profit than losses for now :)
     
  18. Navigation FX

    Navigation FX Trader

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    Main Toolbox: Moving Averages, RSI Indicator, Fibo & Price action.

    Extras: Stochastic and others that @jellyb has talked about as well.

    ichimoku is personal preference to what type of trader you are

    Just remember that around 80% of the time its fundamental analysis and 20% technical analysis :D
     
  19. wisetrada

    wisetrada Trader

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    What some traders fail to get is that the sheer number of indicators a trading system has does not automatically make it a winning system. What matters most is how well the trader understands it. Using just one exponential moving average if well understood can still fetch you your pips.
     
    Navigation FX likes this.
  20. Winjak

    Winjak Active Trader

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    I personally trade on H1, H4 and D1 timeframes and usually look for confirmation at H1. I use support and resistance levels with PA patterns: Pin-bar, doji, inside bar, outside bar. I use only MACD indicator to look for divergences. What concerns the fundamental analysis, I watch the news and dynamics of the main economical indicators: GDP, inflation, interest rates and so on... But I give priority to technical analysis.
     

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