Best technical indicator for day trading in forex?
Question:
Answer:
Almost all technical analysis systems I have read on are not based on careful mathematical or scientific evaluation. Many experts, such as Warren Buffett and Peter Lynch consider technical analysis do be a worthless method of analysis. Many technical analysis writers can sound good to newbies, but they usually based on unsound theories.
Technical analysis does have some basis. The whole theory is that the markets have a crowd mentality. The markets depict human behaviour - fear and greed to a larger scale - and thats why technical analysis works to a certain extent.
To trade successfully means you should have a good trading system and discipline. Trading is largely an exercise of risk management.
As for the best day trading indicator - it really depends on your style of trading. If there was one "magic" indicator that was 80% right - that would simply be worth infinite dollars right? The technique is in risk management.
There's no best indicator, if it was the best, everybody is going to be reach.
If you definately want an indicator with no lies is going to be Price and Volume, those to me tell me almost everything.
Indicators as mentioned are only used for indicating, not for making decisions.
Price and Volume tells us the crowd psychology, which is far more important.
Note regarding the answer from James. There are no "volume" listings for FOREX. It certainly helps with stocks though.
I'm just learning FOREX. Drop me a line. If we can help each other learn... that would be great!
More Related Questions & Answers...