Most of you know me as a chart trader, operating almost without any indicators. But to synchronize our languages, I’ve decently webinar called «Price action and indicators». There I was talking about possible use of indicators – what indicators can be useful in trading?
First, of all, remember one simple thing:
Indicators do not identify any trend, they don’t tell you «what», they tell you «how». The hypothesis about possible trend is your responsibility. I’ve said "hypothesis" because there’s nothing to be sure about, and best traders know that they don’t know. They might think they know, but in reality they don’t know.
It’s very complicated question – how to identify a trend (trend that will tend to continue), I suggest that you read my posts called «Price action basics» in this section.
But once you’ve identified a trend, you can use indicators to fine-tune your entry, to pick better trade location, to calculate a stop or profit taking level. But they don’t do the job of identifying a trend for you.
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