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The lag problem in all indicators

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tele2112
406
tele2112  

There is a subtle illusion in using indicators because there is a significant lag between the entry time using most  indicators, and the price

already moved , once you realize that you start to really think that the market cant be really predictable in a day trader basis, but there 

 is still a little hope, as the lag does exist, what should i do to reduce it as much as possible? 

Marco vd Heijden
Moderator
5797
Marco vd Heijden  
tele2112:

There is a subtle illusion in using indicators because there is a significant lag between the entry time using most  indicators, and the price

already moved , once you realize that you start to really think that the market cant be really predictable in a day trader basis, but there 

 is still a little hope, as the lag does exist, what should i do to reduce it as much as possible? 

Delete Indicator folder.

No Indicator, No Lag.

Michael Maggi
1674
Michael Maggi  
You can use price based systems that don't rely on time: point and figure and also Renko.  Renko is my choice because the charts are so much simpler to read. They also don't need any indicators.
Sergey Golubev
Moderator
99791
Sergey Golubev  

The situation is the following:

  • Most lagging indicators are producing most strong signals so the traders are using them on highier timedrames. For example, very lagging Chinkou Span line of Ichimoku indicator is producing very very strong signal for buy or sell, and many traders are using it on H4/D1/W1/MN1 timeframes.
  • Indicators with little lagging are producing weak signals so we can use them for scalping for example, or for any trading on M1/M5/M15 timeframes, or to use them together with some other indicators which can filter false signals.
  • Some traders are using open bar to trade, and it helps to eliminate the lagging completely. But they are having some other problem because of open bar trading: the candle is continuing painting on open bar so the buy signal can be turmed onto sell signal by two next ticks for example. But there are some scalpers who are using this technique.
  • Non-lagging indicator is the price. That is why some traders prefer price action technique.
mntiwana
3607
mntiwana  

 The Truth

 Indicators are depending (calculating) previous price data, how much a indicator can predict/confirm you when price (future) is still in black box,this indicator is producing exact precise forming,some times pre alerting even,but never repaint (i am not talking about current forming bar) one universal setting for any and every time frame .indicators i means any,can not do more than this,of course we have to do and attach much more to define trend and refine price movement .... just an single indicators performance for those who do not believes on indicators help :)


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