The short answer to this is no one indicator is the best for trade. It’s a mixture of these factors:
The market is unpredictable
The indicators are weighted in favor of volatility
It’s hard to find indicators that match the market well
I’ve covered the various factors and how to apply them to trading as well as ways for trading to overcome all obstacles in your path.
Letting go of the indicators that fail you in your trade
The good news is that there are many different indicators that give you an indication of volatility and price action. Many trading platforms allow you to use them by default, so you don’t need to ask for them.
If your indicators are giving you an accurate forecast but don’t seem to offer enough information from where to buy to where to sell, your signal might be a little low. Your signal is often the only tool you have to judge the direction the market is moving or the potential of your trades.
Another bad indicator to let go of is the trend indicator. Trends tend to move with the market, and when they do move, it tends to be in your favor. Sometimes the trend of an indicator comes with a lot of data points and is hard to parse.
An indicator is not perfect, but there are some signs you should know. Here are some of the things you should consider when selecting an indicator or investing for that indicator.
Know your signals
As I’ve discussed above, signals and trend lines aren’t the only type of indicators you should invest in. It’s just a good idea to have a few of each type of indicator in your arsenal.
So, if your indicators have a high level of confidence in their signals, you should think long-term. That could be five years, for example, or just today.
You should also read the history of a trend line or signal to see how it performed in the past and learn why it’s better than others.
Look for patterns
Another issue you’ll encounter in trading is that there sometimes aren’t as many patterns available for you to trade if you don’t like them all.
The signals and patterns that you use in trading are just that, signals and patterns that are created by the market itself.
If you’re trading more on your own, you’d do better by paying more attention to patterns.
For instance, if a trend is on you, you can use that as an indicator of
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