#582: How to Avoid Useless Forex Indicators

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How to Avoid Useless Forex Indicators

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#582: How to Avoid Useless Forex Indicators

In this video:
00:24 – What trading Indicators should you use?
01:31 – Most Indicators don’t work.
01:52 – You must look at the price.
02:23 – Horizontal levels and Candles are good indicators.
04:50 – Blueberry Markets as a Forex Broker offering a 50% credit bonus.
05:19 – Book a Call and speak with us.
05:35 – 17 minutes Masterclass.

What is the best trading indicator that you can use on your charts as a trader? Let’s talk about that more right now.

Hi there, Traders! It’s Andrew Mitchem here, the owner of The Forex Trading Coach with video and podcast number 582.

What trading Indicators should you use?

Today I want to talk and discuss indicators. As a trader, if you open any charting package, whether it’s MetaTrader like I’ve got the Me here or Trading view, whatever it is that you use, you will find that trading package, that charting package absolutely full of various indicators.

They can be dots and lines and arrows and triangles and all sorts of different things on your charts. And I’ll tell you what, they look amazing, don’t they? They look so good, especially if you’re a new trader and everybody falls for it. I know I did this like 20 years ago. I had this moving average crossing over that one and a swing low here and a MACD there, and I looked absolutely beautiful, and I knew that I was going to become a multi-millionaire in no time at all, because as soon as this line crossed that line there, and this dot showed there and below it and all those things, it was going to be a brilliant, simple, easy trade. Said reality is, none of that is true. That is the truth.

Most Indicators don’t work.

The reality is that almost all indicators that you see on a standard charting package, they lag time, they tell you what’s already happened, they can’t help you, most of them with what’s likely to happen or any sensible trading decisions. Sure, there are some that can be used as a bit of an age once you know what you’re doing.

You must look at the price.

But in general, most people get completely caught up because they don’t look at the obvious thing. And that’s the right hand side of the chart, and they do not look at the price. If you don’t look at the price and you rely on dots and arrows and lines, etc., you’re going to get spaghetti on your charts and you’re not seeing what’s really happening. You’re not seeing the true psychology behind what’s happening. What’s really happening are the buyers are the sellers.

Has it bounced at that level before all those type of things? You’re completely ignoring because you’re failing to look at the price?

Horizontal levels and Candles are good indicators.

I much prefer a number of indicators. Horizontal levels are absolutely fantastic. Why? Because they never move. A horizontal level that you see is the same as what I see at the same time. You know, again, the price, whether it be the daily pivot point, support and resistance level, swing high swing lows, those things never change.

And so by having those on your chart, it’s giving you something that’s an absolute that’s actually happened. If the price pulls back to a round number and that happens to be a previous swing low and it bounces at that level, well, quite likely, then you’re going to get that support level holding and the price is likely to move up.

So then I add another, indicator of a sort and that’s candle, patterns and understanding candles themselves. What they’re telling me are they exhaustion candles. Are they indecision candles. Are they confirmation of a change in direction? Are they confirmation of a continuation pattern or a reversal pattern? All these type of things are really important for you to understand, as a trader.

And you can only really make that decision about a candle upon the close of a candle, because then it becomes again, like a horizontal line. It set is an absolute and it’s never going to change. There are a few extra little indicators that I do like, to help me give a likely, change in direction such as divergence.

I think that is a very, powerful, way of looking at using an indicator. Can help with reversal and continuation patterns if you have it set up right. You cannot just take every divergence signal and go, here’s a buy or sell again, you still need to include those round numbers, those support and resistance levels and the candle patterns as well.

But you can start to see now when you put some common sense, and some real trading knowledge into it, how very simple indicators like that will work and do work and be proven to work as opposed to and lines and arrows and things on your standard trading package, which just will give you lots of headaches. In reality, as a trader.

And so that would be my suggestion. You find some, someone that understands how to trade properly. Someone has a proven system in the strategy, and you join and follow that.

Blueberry Markets as a Forex Broker offering a 50% credit bonus.

Now, if you’re out there, looking for a very good broker right now until the end of March, Blueberry Markets have a fantastic 50% credit bonus. There are a few terms and conditions about which countries can apply and maximum bonus, etc.. I’m going to put a link to that if you’re interested. Have a look at it doesn’t matter whether you’ve not traded with them or if you have an existing account. They’re doing that on both. Just through The Forex Trading Coach only. So make sure you take advantage of that if that’s something you want to do.

Book a Call and speak with us.

If you would like to book, call to speak to myself or one of my team to find out how we can help you to decipher indicators and what works and what doesn’t. I’ll put a link so you can book up a free 30 minute call with us and see if we can help you with the trading.

17 minutes Masterclass.

And if you have not been on my masterclass, I’ll put a link to that as well. Jump on that. It’s only a very short on demand masterclass, gives you heaps of free information and will massively help you with your trading.

So this is Andrew Mitchem here at The Forex Trading Coach. I see this time next week. Bye for that.

Episode Title: #582: How to Avoid Useless Forex Indicators

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Find out more about Blueberry Markets – Click Here

Find out more about my Online Video Forex Course

Book a Call with Andrew or one of his team now

Click Here to Watch Prop Firm Masterclass