Iโd like to express a few thoughts regarding indicators, because 90% of people use them in the wrong way. (sacrificing a lot of money)
๐ฅ๐ฒ๐ฎ๐ฑ ๐๐ต๐ถ๐ ๐ฝ๐ผ๐๐ ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐ถ๐'๐ ๐๐ฒ๐ฟ๐ ๐ถ๐บ๐ฝ๐ผ๐ฟ๐๐ฎ๐ป๐, ๐ฏ๐ฒ๐น๐ถ๐ฒ๐๐ฒ ๐บ๐ฒ.
It's very common to see MACD, Stochastic, RSI, Gaussian Channel and plenty of other โmagic wandsโ plotted together in one single chart.
โ๐ฅ๐ฆ๐ ๐ถ๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ผ๐๐ฒ๐ฟ๐ฏ๐ผ๐๐ด๐ต๐ ๐๐ผ๐ป๐ฒ, ๐ ๐ป๐ฒ๐ฒ๐ฑ ๐๐ผ ๐๐ฒ๐น๐นโ
Wait, you inexperienced Padawan.
Youโve been misled by fake gurus that taught you the โretail wayโ, aka the easiest path to go broke.
What most individuals don't comprehend, along with the functioning of indicators, is that the majority of them are lagging ones.
This means that they trail price movements providing signals AFTER a trend has already begun.
They donโt forecast the future, they โhelpโ to sustain your main thesis, eventually.
And your thesis HAS to be originated by the study of the price action together with the fundamental connotation BEFORE using a single indicator.
Base your strategy on indicators ~> rekt, gulag and harakiri pooled together ๐
In reality, you can completely live without them and be one step ahead of most โtradersโ. (most profitable people I know rely on naked charts only)
โ๐ฝ๐ช๐ฉ โ๐โ ๐๐๐๐ค๐ช๐ฃ๐ฉ ๐๐จ ๐จ๐๐ก๐ก๐๐ฃ๐ ๐๐ฃ ๐๐ฃ๐๐๐๐๐ฉ๐ค๐ง ๐ฉ๐๐๐ฉ ๐๐จ ๐ข๐๐ ๐๐ฃ๐ ๐ฅ๐๐ค๐ฅ๐ก๐ ๐ง๐๐๐!โ
Nah, the indicator is probably making HIM rich, because he's selling it to the masses.
Fix it in your head: ๐๐ต๐ฒ๐ฟ๐ฒ'๐ ๐ป๐ผ ๐ถ๐ป๐ฑ๐ถ๐ฐ๐ฎ๐๐ผ๐ฟ ๐๐ต๐ฎ๐ ๐ฎ๐ฐ๐๐ ๐ฎ๐ ๐ฎ ๐ฝ๐ฎ๐๐๐ฒ-๐ฝ๐ฎ๐ฟ๐๐ผ๐๐ ๐ณ๐ผ๐ฟ ๐พ๐๐ถ๐ฐ๐ธ ๐ฎ๐ป๐ฑ ๐ฒ๐ฎ๐๐ ๐บ๐ผ๐ป๐ฒ๐.
It doesn't exist.