Topic: Are Technical Indicators useless? - page 4. (Read 782 times)

There are many successful crypto traders out there. I don't know what they're using, but I believe it's a combination of both the indicators, plus the news that's happening globally.

So to answer your question, yes I believe there's many successful traders out there who are using indicators, but I don't think that they're only using indicators because the fundamentals can also be a factor when it comes to price movement.

To answer your question regarding indicators being useless, if it's useless then no one would've used it when they're trading. In short, it's still useful. There are some traders out there who are solely using technical indicators whenever they're trading, and there are some who are also using the fundamentals then they're deciding base on it. However, the problem with some traders is that, they think Technical Indicators as like the answer to their problem. Like if they use these indicators, they will have a 100% chance that they will always get profit whenever they're trading. Technical Indicators increases your chances of getting profits in trading however, it isn't guarantee that you will win even you use it.

Trading indicators estimate where the price will move, but it does not guarantee accuracy because it is difficult to know the actual direction of market movements.
But with this indicator, especially if you draw a line based on movements in the previous day, week, month or year, you can find the pattern of the direction of the movement.
Usually, traders only master a few indicators in trading and master them more deeply to determine when to enter and exit the market.
I still can't determine the direction of market movement so I often experience mistakes in trading, but I think that's okay because I can still learn more.
But be careful when using indicators because we know that the current direction of market movements is not easy to predict.

I really think you are falling victim of overfittting, also called curve fitting, basically you are using the many different indicators to create a strategy that fits too closely to the past data and it may seem to give you incredibly predictive abilities, but when you actually test it you notice it has not predictive ability at all.

How to counter this? Simple, stop creating strategies that have a very high degree of accuracy, use less indicators and leave a portion of the price data out so you can use it to test your new strategy, so if for example you have 5 years of data, then use the first 4 years to create your strategy and use the remaining year to test how your strategy would perform at the time.

As with all things, the more things that you take into account, the more you have rationalizing and reasoning your decision.

If you are making trades based on a single technical indicator, the reliability is a lot lower than finding multiple technical indicators telling a similar story.

Taking into account short term fundamentals and multiple technical indicators can be a lot more reliable than just trading on what you see from one or two technical indicators.

I guess I have posted this somewhere else. Recently, I found a free technical indicator, and I thought it was a scam because they usually ask for a premium subscription, which is why I always think those are scams. I followed their signals and thought those signals would be 100% correct, which was later proved wrong. I don't blame them since they also say they do not guarantee all trade wins.

Now answer to your thread title: No. Those are not useless. It can increase your winning possibility, but nothing is guaranteed. You have to do the money management, and you have to use your strategy when lost trades come.

Would really be lots of trial and error i should say because even how good or relevant the indicator is but if you dont know on how to make use of it then it would be still useless.It would really all matters on how well you do

mix up a set of indicators for you to be able make your own analysis on which you would really be able to take advantage even though it wont really be giving out assurance for it to be precise but at least you do really know on what you should gonna do. Its not useless and you would see its relevance on the time that you would step your foot into this market, we cant really be always having that news and sentiments on which you could really use on your analysis or would really be applied into it.Therefore, you would really be still end up on making use of those common indicators which it is ideal rather than on having nothing at all.

It wont really be useless on the time that you would be deciding on going into this market. You would see its relevance and usefullness on such situation on predicting price
on where it could potentially go.

Individually and apparently yes. They are wasted when used in solace but if you can combine the relevant indicators into a trading system or strategy then obviously it can be a game changer. But yes obviously very few people can actually make it profitable.

Yes, the use of indicators increases the chances of getting a profit, but at the same time it cannot guarantee 100% compliance with the result. You should understand that even if all the indicators you use indicate that the price of the coin should increase, but if negative news breaks, its price will move in the opposite direction.

In trading there are no professors, everyone is required to learn and increase their knowledge to be able to remain calm in making every decision so don't give up just because the back test you did on the indicator you are using is not successful at the moment, apart from that i also remind you to focus Just stick to a few indicators that you feel comfortable with, the more you use various indicators, the more difficult it will be for you to determine which indicator is suitable for you.
i'll give you an illustration, when you sharpen a knife to make it sharp, focus on that one knife, don't change it, you will only make more knives that are not sharp if you keep changing knives, the same goes for indicators, just focus on the few that you feel are suitable for you, continue to develop and sharpen your instincts when using those indicators.

I quite understand your frustration and this is one of the reasons why I advise traders against backtesting, it's just fake, and it doesn't work. The candle pattern or indicator you are backtesting would appear perfect, but before they look the way you see them, they might have passed through some indecisive conditions that would be hidden from backtesting, hence the reason why people fail with it. The best is to forwardtest any strategy you want to use, it helps better that way as you can know how it works and get to manage its weaknesses in real-time.

Also, you might want to tell us the indicator you are using that failed you, it would have helped better in advising you. Nevertheless, from my vast trading experience, I will advise you to shun most indicators, especially those that move with the market price, they will mislead you. Just learn only the good support and resistance strategies and it shall be well with you.

Well that's true and in my view, indicators are not a tool to bring you to a definite profit because these tools work according to the market conditions that are happening, and they give us a little idea of where the market is going to go next, for example what we often see is the support and resistance points, some indicators have shown it to you. This is not something that can give you a definite profit but with this tool it will be able to help you more in doing analysis, especially technical and some clues from indicators that you can match with the strategy you have to then achieve your profit target. But sometimes like there are some traders who are like deceived by this tool, therefore before you use it as a reference material you also have to learn how this tool works to help you, and my advice is not to use too many indicators on your screen because it will only make you confused to make a choice between buy or cell, so just use one or two that you think have a more important role to help you.

And yes it's true as you say even though using indicators but still for the problem of the results it will not always match what you want, the market is very volatile so maybe this is just a tool to be used as a reference only to make it easier and give you full confidence to open an entry, I think that's all.

Trading is a business for many of us, and it requires different tools for various types of trading. One important thing newcomers often overlook about Technical Analysis (TA) is that it's not the 100% decision maker but a helpful tool. Relying solely on TA for success might not be entirely sensible. While you might have faith in TA, remember the crypto market isn't at the stage where it can be the only tool.
If you need more information, a good approach is to use search engines like Google, which were created for this purpose.

Technical indicators are nothing but predicting the future movement of the market based on past movements but it doesn't mean the market will move exactly in the way you predicted. Even the results will change for different sets of indicators which is enough to prove that it is not accurate in predicting the movements. So when you tested the market favorably for you but it didn't when you implemented it in real time but it doesn't mean the strategy is not working.

It may work in future trades so it all depends on how long you can survive in the market which is subjective with the capital you have and the amount you allocated for trading.

Who ever said so?

It's good that you collected that data but analysing that and drawing a conclusion and predicting a future movement is a different ballgame.

Indicators are only used to "indicate" the market trend and good for commenting on the past markets while having the current data at hand. They are not what can help you to make a correct prediction but a 50-50 prediction only. If the former was possible people would be trading to make money and not work their rear off.

Use the data to make predictions on paper and see how much you are getting correct and you will understand my statements. Technical analysis is itself a pseudo-science and therefore take it with a lot of salt.

Just as there is no end to the acquisition of knowledge, there is no end to the development of technical analysis. The more knowlegde about technical analysis, the better he can perform. And those who have little knowledge about this but want to perform well through it are the ones who face loss. And these kinds of people will say that technical analysis are usless. But Yes it's true that there is no guarantee about 100% surely you will get profit here by this. It should be reminded that trading is not quick money making scheme.

For me, technical indicators are not useless; they can somehow give an indication of when to buy or sell or where to take a short or long position. That also depends on us, of course. But not in all cases is it 100% certain that it can give profit to our individual traders.

Just like, for example, if I use the moving average, it really tells me when I should buy and sell. It also helps me identify support and resistance to take action in stop loss so that I can earn from my trading activity. But of course we have different ways of using tool indicators, which is also good because we know something about them instead of always relying on guesswork in trading. We still have a different understanding of trading.

Well, there are many indicators that you can use to trade better, but as far as absolute confidence in the indicator is concerned, I don't think any indicator can give you a perfect signal. I have often seen people using different types of indicators, that is, combining three or four indicators to try to predict which direction the market might go.

However, I have my own experience with indicators, as I have used many indicators. Almost all indicators give you a signal, but you get a signal when the market has gone up or down. That is, there is a big difference between market movement and signal, meaning that the signal comes much later, the market movement starts much earlier. I only look at overbought and oversold from RSI. I have not found good accuracy from any other indicator. However, some people try to get good signals after using different indicators together, and some are successful.

Indicators are not a guarantee of making a profit, but they are important for increasing profits in trading so that they are more accurate. Indicators are one thing that needs to be learned in trading apart from strategy which is something that is quite necessary.

Usually I use indicators to see to what extent risk management can be minimized in adjusting to market conditions. Indicators are not something that determines but rather create a road map for us before deciding to trade. The combination of the three may be quite useful for increasing profits in trading, but it does not guarantee extract profits every day.

Most of the technical indicators are passive ones and they are formed when the price has already performed certain patterns. They do not give a clue for the future prediction of the price.
These include the most commonly used indicators like moving averages, RSI and all many others. Most of them are used by the retail traders.

If you want to predict the price of bitcoin and other crypto currencies, you need to know the price action trading. Understand the price action is an art and it only comes with experience. However, once you grasp the price action trading, you will become a successful trader.

Technical indicators are not useless but I believe the reason why you are not getting good results is the current market momentum posed by the market which is nothing showing to be the reason behind the market trend.
I always advise people not to use indicators in this current market cause the best thing to do is analyze the market with the previous trends of the market before halving the year.