moonchild
VIP Contributor
Trading with indicators is very common among traders and there are a lot debates on whether it is profitable or not, in this article we'll discuss whether it is profitable or not, first thing first, it depends on which kind of indicators you use, if you use Stochastic oscillator, moving average or relative strength index.
You'll understand these tools are lagging, which means it takes them quite sometime to catch up, so when a move happens it takes a long time before it will reflect on the chart, so when you rely on it for signals, you'll often be stopped out early due to the false signals.
I use these indicators too, but I use them as tools, I combine them with price action before making a decision, in my opinion it is not a good idea to use indicators only to make decision on your trades,these tools can be very useful when it comes to understanding the trade and the limit which a trend is running, if it is about to tank or change direction.
Trading with indicators solely is actually not advisable because they're lagging but if they are used with price action you'll be able to maximize your profit.
You'll understand these tools are lagging, which means it takes them quite sometime to catch up, so when a move happens it takes a long time before it will reflect on the chart, so when you rely on it for signals, you'll often be stopped out early due to the false signals.
I use these indicators too, but I use them as tools, I combine them with price action before making a decision, in my opinion it is not a good idea to use indicators only to make decision on your trades,these tools can be very useful when it comes to understanding the trade and the limit which a trend is running, if it is about to tank or change direction.
Trading with indicators solely is actually not advisable because they're lagging but if they are used with price action you'll be able to maximize your profit.
