Many young traders who have recently come on the market, find themselves in a position where they are unable to understand how they need to act and the lack of experience subconsciously trying to find the perfect authority, which can shift the responsibility for making trading decisions. Such authority often become famous indicators, especially those on which were written the book, and that is indeed often used, and bring good results in trading. These indicators tend many traders have worked very hard with them, and they affect the real market. There is even a phenomenon that since all are about the same indicators, their instructions influence the market more than the economic news. Therefore, the use of indicators is often a classic "self-fulfilling prophecy."
Do not miss : Several intraday trading strategies
On the other hand, indicators - this is not a real market and they do not indicate the real forces that drive the market and traders. In fact, they only show what is happening in the market, analyze the past in order to try to extrapolate the future with a high degree of probability. Sometimes, quite often, it can not be done. Operation of any single indicator or oscillator causes a lot of questions and clarifications. Every experienced trader can name dozens of cases, when one or another instrument simply will not work, and the reason for this in the instrument. In order to prevent this from happening, you need to be very attentive to the scope of each individual indicator.
Trader : How to choose a trading strategy
The weakest point of all indicators - the definition of entry points. It is in order and is often used of indicators to determine such an entry point on the order of accuracy. If three indicators unanimously point out that it is time to enter the market - it is most likely true. If the divergence between established (divergence) - it's a great clue that the market is not so simple as it seems at first sight, and do not need to rush. Each entry point, which offer displays and traders who previously studied their behavior, it is desirable to repeatedly check on a demo account, and all sure to equal the real market tested by the fundamental factors of News Corp. and the peculiarities of the current market behavior. There is a phenomenon of the "nature of the market", when the market changes so