Translate

Post Top Ad

Thursday, 25 April 2019

Is the Indicator Important in Trading?

Many indicators in the binary options platform. The indicators include popular ones such as, Stochastic, Parabolic SAR, and Relative Strength Index (RSI), Bolinger Bands. Have you ever tried using these indicators in trading? How is the result?



Most beginner traders usually fail in the practice of using these indicators.

that if you want to try using a tool that is just known in your trading, be it an indicator or a new strategy, you should use a virtual account first.

For those of you who have been able to successfully use indicators as a weapon to make a profit - maybe even making these indicators as a mainstay - certainly not a problem.

However, if you feel uncomfortable with these indicators, don't force it. Not all sophisticated strategies or popular indicators can help you achieve profit. Sometimes a simple way can be a friend when trading.



Opinion Differences Enrich Knowledge

Having differences of opinion, or the method used in translating price fluctuations that occur in the market is a natural and even good thing, so we can learn a lot, try and be encouraged to do better.

Some traders assume that trading using indicators only makes it complicated. According to them, trading binary options do not need to use indicators. And some popular indicators that we know are, stochastic, Parabolic SAR, and Relative Strength Index (RSI), these are known as "oscillators", because they oscillate, or move, between buy signals and sell signals.

The problem with these main indicators is that they work horribly in a trendy market because they show the conditions of "over-buying" and "over-sold" almost all the time the market is trending. So, if the market is in a strong uptrend, an oscillator will show the market as excessive buying for most of the upward trend, even if it continues to increase for a long time.

The opposite is in a downtrend; The oscillator will show an over-sold condition almost continuously in a downtrend. This means that these popular indicators try to direct traders to choose price peaks or resistance, and lower points or support. Market conditions when excessive purchases or too well-selling imply that the market will experience a correction, when in fact it is not like that.

The problem is nobody knows how long the market will trend, so you will have a lot of fake signals before the actual peak or market happens. This is where it is often trapped. Because these indicators do not show you a number of signals that are fired pointing upward or downward actually.

Many beginner traders learn various complicated indicators, which are expected to provide guidance for profit. But the opposite is true.

Read to  binary options strategy for beginners, make profits quickly

Indicators Often Don't Help

Technical chart indicators come in two different forms, namely, "lagging" indicators and "lead" indicators. Lagging indicators are also known as indicators of "momentum."

According to some traders, there are indicators that are considered to help traders to make a profit by looking at a trendy market, however, the problem is that the indicator catches the moment too late, in that the indicators fire buy or sell signals to the trendy market after the market has start the trend, and at that time the price may be ready to reverse or reversal.

Another problem with lagging indicators such as moving averages is that they will cut you into a part of consolidating the market; releasing buy and sell signals just like the market is about being ready to reverse and retest the other side of the trading range or consolidation area.

So, basically, the only real use of the lagging indicator is to help identify a trendy market, and moving averages are really used to help in trend identification. not for anything other than identifying dynamic support and resistance areas.

Raed to 10 Tips for Trading Strategies, so you can get Profit

Related Post

Post Top Ad

Your Ad Spot

Pages

close