What are the best 3 indicators?

[CajunFX]

Hello All,

I am new to Forex (might explain what I am doing here) and in my readings to date I keep hearing the message "don't over anylize the market". The other message I keep getting is that a successful trader uses just 2 or 3 indicators. So my question here is...

If you could only use 3 indicators, what 3 would you use and why?

I am still learning and many things in life you cannot learn from books so all feedback is appreciated.

Regards,

CajunFX

[neoinvestor]

Cajun,
I'm just a beginner as well so hopefully this is'nt the b"blind leading the blind" but from my mentoring program I have narrowed in on the MACD, Stochastic, and a variety of EMA's. I always wait for MA's to cros such as the 30ema over the 60ema. Don't know if it helps but if you find something really good, let me know. I need all the help I can get!

[Maji]

Cajun,

In my opinion, the top three indicators are price, volatility and moving averages.

By the way are you from Louisiana. I am in the New Orleans area.

Maji

[CajunFX]

Hello Maji,

Thank you for the reply. I am new and find that there are an abundance of indicators so would like to keep it simple while starting out.

Have you tweaked your indicators to your trading style or do you use the default that the platform provides? And if you do not mind, what do you look for in each indicator?

And yes I am in LA but not native. Originally from CA but moved to Lafayette when they shut down the work offshore CA in 1982.

[CajunFX]

Neoinvestor,

Thanks for the input. I don't worry to much about the blind leading the blind as sometimes that is the best way to go.

Working offshore for 20 something years has taught me that a fresh set of eyes will normally see things I have been overlooking for years and that reading it in a book or learning it in a classroom does not always mean it will work in real life ;-)

CajunFX

[Maji]

Originally Posted by CajunFX

Hello Maji,

Thank you for the reply. I am new and find that there are an abundance of indicators so would like to keep it simple while starting out.

Have you tweaked your indicators to your trading style or do you use the default that the platform provides? And if you do not mind, what do you look for in each indicator?

And yes I am in LA but not native. Originally from CA but moved to Lafayette when they shut down the work offshore CA in 1982.

Cajun,

I don't really use indicators to base my trading decision. I use price bars. I use ATR as a measurement of volatility to determine where I will place my stop loss. As for Moving Averages, I don't use them other than calculating the MA of range for determining ATR.

I am not a great fan of indicators, so I am sorry you won't get any help from me.

My advise to you will be to stop looking at indicators and start looking at the price chart itself. Look for support/resistance levels. It is a little fuzzy thing, but once you can train your eye to find those levels you will be doing good. Also, learn about money management and trader psychology. I still lack the last and that is the most important aspect of trading.

Good luck,
Maji

[Baruch]

You don't need indictors. They are overrated. Just trade what you see - and hear (news).

[rollingstone]

I don't personally think you can generalize, as I have read many times you have to find a style of trading that suites your personality, your timeframe, your working environment etc.

You have to be comfortable with the way you trade or you won't gain succcess.

Some people swear by trading fundamentals, others prefer price action and chart patterns, support resistance, flags, double tops etc, others swear by one or other techinical indicator.

No one method is right or wrong, finding what you like is what is important. If you fully understand how something like Demarker oscillator or disparity index or any of the other indicators work and you are comfortable with it, then that is a good indicator for you.

There really is no debate about fundamental v price patterns v technical, they are just different styles to get you to the same place.

It's like travelling from A to B and debating what is best between a plane, a car, a motorbike or a pushbike.

They all get you there eventually but with different risks involved.