Re: What is your favourite Indicator?
To Me Technical Indicators dont work :
Technical indicators don’t work as most traders use them: as a trigger signal.
From moving averages crossovers to RSI or stochastics, all of them were created to represent “certain” market condition on the last n-periods, and not as a buy or sell signal.
The truth about technical indicators according to stockcharts:
They are nothing more than a “series of data points derived by applying a formula to the price data of a security”
(or any other instrument such as currency pairs).
Right, we are talking about how the market behaved on the last N periods, not how the market will behave in the next N periods.
On both cases (and all indicator cases), the indicator is pointing up (or down) because price went up (or down) not the other way around. On other words, the indicator doesn’t make the market go up or down, it’s the market that makes the indicator point up (or down).
I Wish You Happy Trading