Do indicators work in forex?

Do indicators work in forex?

People tend to get this wrong all the time thinking that they have found the Holy Grail when it comes to Indicators.

Truth is that Indicators should be used just like any other tool when it comes to trading.

Think of it this way, if you are going to build a house let’s say and you need a piece of steel to drive nails, A hammer and you know that using this will make your job easier. The same holds true with indicators.

Now the top image is a naked chart and yes you can see clearly which way you should be trading. Now where to jump in at?

As you can see the moving average ribbon indicator in the second photo will give you a more clear area to enter the trade at.

As long as i have been trading there has always been debate as whether or not to use indicators for trading. And in truth i had a fellow trader say this to me and it still hold true to this day.

Trading is very personal and if you choose to use indicators or not, is a personal choice. Will it be a holy grail for you to print money? I doubt it, But the backbone of any system is how you trade it. 

 

The point to this article is not only to save you time in your life but to answer questions that you may have about trading with or without indicators.

Below is two of my Favorite traders in the world that have answered just this for you.

U.S. Government Required Disclaimer – Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.