Indicator Bullshit
I really have to disagree, the article is highly misleading.
Statements such as "indicators are all designed to predict what a market will do" should ring alarm bells.
Where do these people get these idea's from ? worse still why do they insist or spreading these ridiculous misconceptions.
Even worse still take a look at this for a statement ! "Comments such as: I tried Indicator X and found it was worthless or I tried Indicator Y and found it useful, make no sense"
So this guy is trying to tell me that I cant verify the statistical significance of some indicator, that I'm using for a specific purpose ! What absolute nonsense. Either an indicator works for its intended purpose, or it does not. Determining this is the ONLY thing that makes sense.
This is a better article
Four Problems with Technical Analysis, this guys is a techinical trader
FOREX Statistical Research Center/Four Problems with Technical Analysis
some people says the market is random where no place for techinical trading other people says there are cycles that we can trade, and some say its pure techinical , I think its a mix , there was a nice subject about random walk index inidcator on TSD look at it
What a stupid article. It also ridiculously claims, "support and resistance is a waste of time".
Are they feeling alright?
Read it in context. That article is about trend following, not daytrading.
ALL indicators lag. There is no indicator that will predict exactly what to do. The difference is, smart traders take trades based on percentages. The best traders play minimal risk for maximum gain.
If you really want to know about the statistical significance of indicators read 'Evidence-based technical analysis', you can get it from amazon. The guy in the article is just trying to push his stuff but you needn't dig very far to find actual published evidence that indicators are indeed 'bullshit'.
If you really want to know about the statistical significance of indicators read 'Evidence-based technical analysis', you can get it from amazon. The guy in the article is just trying to push his stuff but you needn't dig very far to find actual published evidence that indicators are indeed 'bullshit'.
I have it in my shelf, it's a decent book athough I think (and the author himself basically states it himself) that his tests are too simple. In fact he states that some other studies have found correlation with neural networks and some more complex combinations of indicators - source list on that book is a goldmine of good research. Also I think the stock market is not the best market to test technical rules on, stocks are just too random when compared to forex or futures.
hi
remember "History Repeat Itself" term , what does it mean ? it means there's pattern repetition from the beginning of fx business till now , so the key is "pattern recognition" , the more pattern you've recognized the more pips you'll have , this is technical matter so fx indicator exist in order to make it easier to recognize the pattern and for me "technical is visualization of fundamental" 
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forex is random ?
forex has patterns ?
forex is for news traders ?
forex is for techinical traders ?
is there cycles in forex ?
the answer to all these quesitons is yes , sometimes its random , other times there is a pattern, news play a big rule , sometimes techinical anlysis works well and finally there is indeed cycles in forex
we can't say indicators don't work always, we can't say forex is alwasy random, we can't say there is no pattern.
they are all true, there are different filters + inidcators + days in which a trader can distinguish which apply to the market and use his rules to enter the trade
The only thing we know for certain in forex is RIGHT NOW. Meaning the current bid and ask price.
No indicator can, or ever will predict the future. Indicators can only give us a representation of past price history. History can only give us a "probability" of future movement, but will never accurately predict with certainty. 
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What an excellent article
Indicator Bullshit | TurtleTrader