Suggestion for best indicator to be used for trade and why - page 3

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Gihon:

So Fernando spoke from experience and I agree, no Indicator is superior to another, it's a tool. Its like looking for a knife for carving wood. Its not the knife but who is carving with it which will bring an art to life. They are all good for something.

I agree with this. Another way to say is:

You can own a Stradivarius violin, but that doesn't mean you can play it. And it takes more than just one violin to make a symphony.

 
Gihon:

Hello Jaffer and Everyone,


It is really interesting to read this tread.  

It is a case study of how people are communicating while not paying attention to every detail and then of course there is a lot of misinterpretation.

I think this is the sickness of this century (I mean it is more common today than ever before...)

So back to topic...

When it comes to the Indicators I just study them for the fun.

I want to know who created it, what was his or her background, what was the idea, when was it created, did the author made a fortune with it, how is it calculated and why is it calculated that way, etc.

I understand you are waiting for names (maybe I will write a few)...

I can trade with any Indicator and I can build a profitable strategy around it. Actually I like playing with this to see if I can master this or that Indicator.  I can see people don't go deep with Indicators, just keep scratching the surface. But if somebody becomes profitable with trading and is able to build profitable strategies it is obvious that profit doesn't come from the Indicators. 
Novice traders (I consider myself still a novice with little wisdom) pay attention too much about entry logic when actually profit comes from trade management (including money management).

So Fernando spoke from experience and I agree, no Indicator is superior to another, it's a tool. Its like looking for a knife for carving wood. Its not the knife but who is carving with it which will bring an art to life. They are all good for something.

I can say tho which Indicators I like. 

So these are: ADX, ATR, BB, RSI, Moving Averages, I really like the Ichimoku and the story behind. Let's say these are my favorites. 
All Indicators have the same mission that is to identify a trend (and its strength) or reversals. There are a few that can help predicting price moves but as I heard somewhere:

"How do you want to bet on what's the temperature outside when you have a broken thermometer?" So I don't want to predict, I just deal with probabilities and the rest is managing numbers. 

Then comes the story about what settings should I use in this Indicators. That is almost pointless because it is how they are combined and built into a system.

Eg. RSI 14 on M1 time frame will lie a lot. Without looking into other details its not saying much. (Eg. checking the price on higher time frames, looking for confluence, etc.)

An Indicator setting is also based on profit target, what move I want to catch and for how long, with what frequency I want to do it.

Alright, hope I could contribute to your topic,

wish you good time with it.
(I would be glad actually if traders, coders would share honest opinions about it... but I guess its not exciting enough because as I said profit is not coming from the Indicators, that's only the tip of the iceberg.)

Yeah, that's what I am talking about. Thank you, Gihon for your reply and its wonderfully insightful answer. This is what I can say I was expecting a bit. I am also not depending my trade on the indicators. I just wanted to know what people are using as indicators so that I can put them in my probability equations and check whether they are capable of helping by estimating what can be next. Not exactly but with a confidence score. This I was willing to publish as theory of mine. But as you might have noticed that people think I am a newbie and trying to search for something or the other. I am a trade analyst and trying to figure out what can be good for the whole of our traders. I am trying to use computations and for that I need to know what people consider as bases for their signals. I concluded that indicators are the form of signals that can be used.

Hence, I tried to ask for suggestion. You gave a good suggestion and I appreciate. But still, you have mentioned the names of the default indicators which I have tried way before and they didn't satisfied my equations. Hence, I was looking for some customized indicators what people are trying and attempting. That I wanted to use as variable to my equation.

I hope that will help you understand what I am trying to ask. I appreciate your reply. Thank you once again.

 
Anthony Garot:

I like to write my own indicators.

I see them as visualization tools.

I can see past price data in different way. I can apply mathematical constructs, like averages, medians, and stddev.

Indicators let me pull information from different time frames and different currency pairs.

This helps me when I think about strategies. It helps me to really understand what's going on with time series data.

All indicators work, assuming they are coded correctly. By "work" I mean that they show past price data in a different format.

So the "best indicator," in my opinion, is the one you write yourself.

Thank you Anthony my friend. I would love to know that names of your customized indicators. Let me know. I just wanted to use them as variables inputs to my equation and I will try to get another equation that will help me in guiding people.

 

The best indicators are not the ones used for technical analysis. They will normally use a dll to function, because they need to take in data from other sources, other than just price and volume which you can get directly from the chart. They are more sophisticated and evidence based. Maybe you want to look there as well. 

If you know how to model market structure using any given data to you, you should be able to come up with your own indicator. That is the better way.

 
jaffer wilson:

Hello Everyone,

 I need your suggestions on the top 10 best indicators to be used for trading or binary. Please also suggest why you would like to use it.

Kindly, share references or code base link so I can also try it.

Please everyone suggest something and help me.

I have 7 lines of Bollinger Bands (25) on my charts, because they make me see the charts easier.

But they are not for trading.  I use horizontal lines ( for multi-timeframe analysis) for trading.

 
yogureee:

I have 7 lines of Bollinger Bands (25) on my charts, because they make me see the charts easier.

But they are not for trading.  I use horizontal lines ( for multi-timeframe analysis) for trading.

Great to know something useful. Thank you.

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