Indicators

I got a phone call this morning from an old friend asking me whether or not I have a certain type of MT4 indicator.

If you've noticed, my charts are pretty much devoid of any of the indicators - I pretty much rely on only Support & Resistance, and trend lines.

I have found that they suit me best, as they're pretty simple to use.

So, of course I told my friend that I don't have what he's looking for. In fact, he was quite taken aback when I told him that I don't use any mathematical indicators at all.

That is not to say that indicators are useless - many, many traders swear by them.

Maybe I'm just too dumb to use the indicators.......

Different strokes for different folks.

Rant over.

Using Technical Indicators in Chart Analysis

A friend of mine recently asked me what are the technical indicators that I use in my chart analysis.

Well, I have to confess...I have never been a big fan of using indicators on my charts. If you look at all of the charts that I've posted so far, they're quite "clean" - except for the odd support/resistance lines here & there. That's the way I like to trade, which is looking at how price reacts at major support & resistance areas.

I do have the MACD Histogram indicator at the bottom of the chart, though. I use this mainly as a confluence to support what the price action is telling me. I never use MACD as a signal to take up a trade on its own. Never.

This is not to say that indicators are absolute crap. I know plenty of traders who swear by them, and that's fine with me. There are many ways to skin a cat in this business. For me, I'm just comfortable with the rather "minimalist" way of trading.

Still, I sometimes find myself dumbfounded whenever I look at someone's else charts that have all sorts of indicator lines (and in various colors, too!), trying to make sense of what the market wants to do...

Personally, when it comes to using technical indicators, I fully subscribe to "less is more" concept!