Technical Indicators – Do they really work in Forex?
Technical Indicators – Do they really work in Forex? Ali, trader and educator comments. PLEASE LIKE AND SHARE so we can bring you more! Does technical analysis and price action play a part in your trading process? What do you look at – candles? price action? levels of support or resistance? Any technical indicators you look for? Do you favour any particular technical analysis system to guide you – bollinger bands, fibonacci, elliot wave or anything else? Or do you have your own rules? Some traders use MACD oscillators and exponential moving averages for their trading strategies. But aren’t these all lagging indicators and somewhat ineffective for predicting the future?
Is it true that most trading strategies depend on some form of moving average calculation?
Yes technical indicators do work but I think the golden rule is that they work alongside price analysis. Price analysis is about 90% of what I do. I look at price action, I spend less time these looking at trading patterns – so price action in relation to levels of support and resistance, in relation to moving averages particularly when used with pivots. I do look at MACD and RSI sometimes but that’s mostly for my swing trading