Topic: Are Technical Indicators useless? (Read 700 times)

Indeed, indicators can help our trading, but we must be able to know the strengths and weaknesses of an indicator, so that we can use it well. I prefer to use EMA which seems to be commonly used and of course can flow according to the current trend. However, we do have to be disciplined, sometimes the EMA breaks out and we have to be disciplined to dare to cut losses, this is an example of what should be done in recognizing the characteristics of the indicator

Indicators are very helpful. Maybe you just didn't hit the right strategy while following those.

Your strategy will depend on those indicators. You don't just want to predict without a basis right?

How long have you trading? If you are just having a bad day, try tou bounce back the other day.

Nothing is useless as far as trading is concern. If truly they are useless then they can't be there as indicators. The best thing is to try all the possible indicators available (that's if you can) then work with the one that gives more insight and suit you. Don't go for complicated indicators and always go for the one simple to use. The aim at the end is to be profitable.
Mind you, using only technical indicators is not always advisable, you can mix it with other confluences like price action and trend line it give you more clarification.

TA is good when you are trading when you are investing not so much, why? because TA usually used for short term where in short term people can't really analysis based on trend but instead on TA
due to the lack of data so they just read from the chart instead. even though it may not be accurate.

Losing trades is inevitable and this is something that people should mainly be reminding themselves so that they wont really be expecting that much about winning constantly because it cant really be just that possible on having this way. Indicators are useless? They wont really be that making that perfect trade from time to time because market conditions wont really be that the same and this is why it would really be just that wise
that you should really be that versatile on whatever things that you would encounter because trading isnt really just talking about making profits because before you would really be able to experience such things then you would really be needing to pass up on lots of trials and errors. Using up indicator would really be that relevant because you cant really just be able to handle yourself on this market with some naked trading.

You would really be that finding to be that relevant on the time that you would really be stepping your foot into this field.  You would be finding it to be so useful
because with these tools you could really be able to have at least the idea on where prices could possibly go on but of course dont make yourself that so sure
because we know that we do make pure speculations on using up these indicators.

Maybe Yes or No because that will depend on the trader who uses this and what kind of strategy they've been using as it syncs with what they are doing, and of course, on how they analyze the market momentum.

Well, I would say that it was very useful to my trading journey now but not before. Why? Because TA can't be made right and ready, and it is hard to analyze the situation if you are lack of knowledge. This is what I mean and it varies on the capability of the trader. Some got is right and useful, some had also seen this as useless.

the thing with many people that seemed to miss the important thing about TA is that they always expect the technical analysis to be true all the time, this is not really what TA is.
its just to give insight about current condition of the market, meanwhile the market itself could be having massive change at almost instantly whenever there's something big going on. just like
when there's bad rumours and bad news coming it could quite literally change the direction of the market itself which in this case render these TA useless.
doesn't mean it will be useless forever, there's sometime that TA really become meaningful like those in short term trading.

Not it's not useless , it works really well but not all the time which isn't bad. The issue is the patience you need to exercise for the synchronization especially when you are combining more than one. You won't expect them to be right all the times which is where most people have issues with it but if you can be patient enough and manage your capital very well with a good strategy then you will enjoy it.

Just increase the chance of winning but not as always assured of winnings we know how the market can easily manipulate the whales and other factors of it, not all indicators are suitable for every trader, you must need to find what kind of TA will support with your trade, if you cant find why not create your own strategic way that suitable with your trading habit. At the end still even there's a good TA you will decide on your self, if you will put your position or sell it. Consider emotions in trading.

In my opinion, Technical Analysis is only useful if used as a Money Management strategy tool, so that our capital is not swallowed up by the market, so it is not used to determine market direction, especially if the market direction is daily. , monthly or even annually. Even though using this TA is not one hundred percent correct, at least you can use this TA as a guide in making decisions.

So in my opinion technical analysis focuses more on trade management because this is still a logical assumption that can be obtained from knowledge and experience. In essence, as a trader you must be able to learn about 10% technical, 20% money management, 70% psychology.

There is a huge difference between not being able to win every single trade that you make and not making profits, take a look at your favorite sport, if you have any, and think about the best player ever in that sport, do they won every single match in which they participated? Not really, even dominant athletes lose as they have a bad day or simply their opponents were better during that match.

However what makes them the best is their ability to perform at a high level on demand, and this is what a mastery of TA will give you.

but then again if these TA doesn't even helps in getting profits why even bother doing TA in the first place, I think TA is good way as an indicator to know which project deserving investment and to trade for those traders.
the TA most of the time helps getting profits, but sometime as you know when the market is just working out of pure supply and demand, TA somehow becomes less relevant in this regard and instead the market will gone astray from what described in TA guides, therefore its not only TA required for making profit but also the instict of adapting the market and knowing what gonna become beforehand.
otherwise its just gonna be series of lose.

Not so much. Technical Indicators are meant to be guides for you to derive a sound judgement from, they're derived answers aren't to be taken at face value and you should always employ a broader perspective approach when receiving Technical Analyses. The thing about TA is that it's almost always going to be wrong, but you'll know this retrospectively, and you're not really a clairvoyant (at least I think so) so the best thing you could really do with these analyses since they are still good is to actually piece them out, break them down in wires and figure out why and how these people came upon these conclusions. Just cause someone's saying "bitcoin would drop to 10k next month due to this chart I made" you'd follow them blindly already, figure out why they say that, understand the reasons and what indicators they came upon that led them to that conclusion, from there, create your own opinion and follow that.

That is the main thing that most people should already know, especially those who have just come to this trading. Of course the mindset they bring will greatly affect the results they will get later. And the fear is indeed something like this, mindset. It is not uncommon for some to come with the wrong mindset and usually also with greed. they come because they see the success of other people who have succeeded in this field and obviously they will be like encouraged to do the same thing in the hope that they will be able to have the same fate as the people they see. But the problem is that there are some of them who only focus on the benefits without seeing behind the big profits there will also be big risks, so they must really consider it, this is not a place to make you rich instantly but trading only gives you the opportunity to achieve all that, and well whether it works or not depends on you yourself who live it, if you really mean it then I'm sure you can achieve it, and well still you have to bring the right mindset, not to be greedy because you want to be rich and also have to have good planning.

There are no guarantees there, profit and loss will definitely occur alternately. Therefore you must continue to learn especially to minimize losses that you definitely do not want there. The point is not to be a complete solution to realize your dreams but maybe trading only gives you opportunities and the rest is back to yourself.

It depends on how one use them ,some are very good using indicators and have made good profits from it while some are pure price action traders. Choose the part that suit you best wheather price action or indicators.

I wonder where people get that impression, I mean any book which is serious about teaching its readers how to trade is very upfront about the fact that if you become a trader you will not only lose, but you will lose several times in a row and suffer important drawdowns during your journey.

So I suppose that those that think they can get guaranteed profits have never even read a trading book on their life, as otherwise it is impossible to explain why they have those mistaken beliefs.

It's always good to take a look at the market time to time, there is nothing wrong with that, we could just stop trading for a moment and just hold our money and take a look at the market to see the bigger picture.

However, unless we are doing it on purpose because there is no good way to get into the market, then we shouldn't just wait around like that for a long time, not like months, that doesn't make sense neither. Indicators are not always correct, but at the very least they are telling us something, without indicators we wouldn't have that neither and this is why people mostly use that, to have a guide. This doesn't mean you are guaranteed to profit if you are using it, but at the very least you are trying your best.

I won't argue about holding as I have proven that to myself as well. Nothing is gonna hurt as well for me to try going with trades and so far, I don't have good trades for my recent trades.

But that's fine, these indicators that I am believing seems to be not working with what I have bought but what's good here on doing it on spot. I am not obliged to sell when I am not yet in profit.

Until I see the profit taking time, going back to the old style of holding.

Indicators allow a trader to form a general idea of how the market works. After all this is some kind of a definite guideline; they help structure the chart. Yes, they are not a guarantee that conclusions of a trader will be correct and productive, but they can help create a foundation on which those conclusions can be built.

That's right, sometimes even with the use of indicators but still the final result is not necessarily in accordance with what we expect, but in my opinion it is a natural thing because well the indicator is only an auxiliary tool for traders to be more confident or more confident that the market will really move according to what has been predicted. The point is that we must realize that it is not the trend that follows the indicator but the indicator that follows the trend with some reference points that are shown and of course that we can take advantage of.

I quite agree with you, and indeed in my opinion it is also better for us to use the follow the trend strategy because I think it is safer, and of course use a little fundamental analysis there, because on average strategies like this are more accurate when we use fundamental analysis, you will be safer from the cruel price fluctuations that occur before closing. I'm not saying technical analysis is not good but maybe it's just as a reference point for what's actually happening to the trend in the short term, and I think fundamental is also very good, if you want to be more comfortable mentally then you can choose some fundamental strategies that you might have.