Indicators Thoughts.. - page 2
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Maybe you find something out of those observations but the playmaker behavior may change somewhere. Then you have to stop trading to gather new train data to build new network.
If the "playmaker" behavior changes that dramatically then any strategy will have to go under the microscope again , unless the change is not that dramatic which means our artificial buddy would not find it that hard to adapt.
But in a way ,comparing this to indicators , you would be doing exactly what those brilliant minds did , just a lot faster , more tested and more precise , unbiased without being affected by the taste of what "his wife cooked that evening". xD
Then if we should pick for example 3 Indicators, market independent, what would you choose?
I think you are not addressing me with that response ,but in case you are :
if you were to pick non-oscillator indicators you'd have to divide their output by the close price of the bar of each output (were they on chart ,but it applies to ATR) so that the network would have a hard time memorizing setups . (Just like in school you have the "students" who learn and the students who memorize and recite , you are aiming for the former)
An idea of indicator is speed of price moves, momentum trading, orders flow...
Very good option to trade.
Also cycle trading, but it is harder and more subjective.
Time and Price are the basis for an indicator, where else would you find data?
An idea of indicator is speed of price moves, momentum trading, orders flow...
Very good option to trade.
Also cycle trading, but it is harder and more subjective.
Momentum is another really good option to look for.
But since Markets are a battle between Bulls and Bears what indicators does better reflect this ratio?
Have you tested Alexander Elder indicators Bulls / Bears power?
and
What do you think of Trading Systems that doesn’t use Indicators except ATR but only O,H,L,C, candle patterns, bar patterns and Time?
Candle patterns work fine on the short and medium timeframe, i.e., timing your entry/exit and basic rules for taking the trade. But you can't tell macro market conditions with just candles. Like, you can tell whether you're in a current up or down trend, but you can't tell the current directional bias of the market. I mean, I guess you could if you zoom out and look at the D candles, but that's kind of a pain - much easier to throw a moving average indicator on your chart.
If you're automating your trading, you can use candle patterns as your basic signal, but you'll want to use indicators as your confirmation/filters.
What do you think of Trading Systems that doesn’t use Indicators except ATR but only O,H,L,C, candle patterns, bar patterns and Time?
I only use OHLC info and Time to trade and i also dont use candle patterns, In my view Indicators are lagging and should be used to identify trend only and should never be used to enter and exit a trade.
I have traded all you mentioned and i have some thoughts on it:
1. ATR- its used for trailing, I dont use it as my method of trading is fixed e.g, 1:1
2. OHLC - these are very powerful info which also is originating point of pivots. however candle data needs to be correct, Tick data may be inaccurate so rates data or data which comes through genuine source will be required, e.g.. LME provides true data which is very costly, while some broker who provides data for free may not be accurate. If you apply OHLC based methods on incorrect data, you will always end in loop of sometimes things working and sometime not.
3.Candle patterns : its good for beginners however as a professional its not advised to use it. The true meaning of trading lies on Elliot waves which mentions a trend may end EF wave, If you study it and enter at pullback and keep holding until F point is reached then your risk reward will be 1:20 or more which is a professional, sustainable and long term working way to make money
4. Time : very important, Fibonacci Time, Arcs, Pitchfork, Trend channel, Fibo channel are all important tools used to measure time accurately.