Do you trade Stocks, ETFs, Futures, Commodities or FOREX?
Do not fall for the hype that you need indicators to determine turning points, the trend, support, resistance or a trend change.
So many will fall prey to a sales pitch for an indicator or for specialized software that creates the mirage of profits from the past.
Some of you reading this have a library of indicators or systems that you bought. And are still searching for what works.
Selling indicators is a business that has gone on for a long time and it will continue to. Someone is creating a new indicator to sell right now. Check your emails 😊
Indicators all look at the same thing – and that’s price action.
I too thought that the indicator-based mythology was the way to make money in the markets.
It’s hard not to be taken into using them since that is what you are shown on CNBC and virtually every site using technical analysis.
It doesn’t stop with indicators under prices, it continues on top of the prices too!
If you cannot see the prices through the indicators, well…
Then there are the never-ending connect the dots trendline users.
There you will see lines drawn in the past connecting points that show breaks and/or retests to show how they worked, in the past.
What about in the now? Sure, they show them too, but when they don’t work — as they typically don’t — the line is redrawn.
You cannot find support or resistance by connecting points on a chart and project the line into the future. The concept is dumb!
If you are following advice that is selling you an indicator or telling you that drawing diagonal lines and projecting them is how to understand price action, do yourself the favor and walk away.
You will be led down a path that leads to the technical analysis maze of confusion.
Once there, you will be offered another line to draw or new indicator to “keep the dream alive.”
These will be offered with special words to name the lines and/or indicators to keep you under the indicator mythology spell.
If what you are reading is disturbing you, that’s good, you’re thinking and questioning what I have said.
And, you’re now questioning what you’ve been told to believe in the past about as to how to determine price movement.
Those telling you that lines and indicators are needed face the fact that it doesn’t work almost on a daily basis.
But they’re in the business of selling what they have to make a living.
It’s akin to a used car salesman that sells junk with a shiny paint job.
Get off the indicator and line drawing merry-go-round
Think about this, browse the Master Trader site, view prior charts of the week. I believe that a few “ha-ha” moments will happen.
MasterTrader and You Building Your Financial Future Together
All the best,
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Chief Options Strategist