The 3 Biggest Reasons Why Trading Indicators Are Overrated
It’s really a shame that many traders feel that the forex market can only be traded when using indicators In fact, most traders absolutely flood their charts with one needless indicator on top of another Its sad that some people think their chances of success increase with every indicator that they put on their charts . .Well let’s put an end to this right now Here are the 3 biggest reasons why indicators are so overrated: . .They are generally lagging I know that when it comes to back testing, indicators look amazing That’s why newbies get so excited with them It looks like they are the holy grail when you back test them However, there is one little problem with back testing It doesn’t look that accurate in real time, which is what matters in order to succeed . .They don’t tell you anything about the market You can get almost anybody to trade with indicators How hard is it to trade with stochastics? You buy when the market is oversold and you sell when the market is overbought But what exactly does this have to do with the market What are you really learning about the market Do you think that most big time traders really care about whether stochastics are showing oversold or overbought? I don’t think so . .You don”t even have to look at the price This is by far the biggest problem with using indicators It has to do with the fact in how people use them They are mostly used in mechanical trading systems What this means is that all they have to do is blindly follow the indicators The price is completely irrelevant How crazy is that?.
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