I have come across people saying that indicator trading isn’t good enough and that technical indicators are the wrong tools that traders use.
People have argued that indicator trading is fallible as it is based on past price data and that it is lagging. But is this really the truth?
In this blog post, I am going to bust some myths that are out there on indicators and indicator trading as a whole.
Traders around the globe use various technical indicators to get trade signals and they look to use this to capitalize on the price swings in the financial markets.
I am sure that you will know about a handful of indicators but do you know that there are indicators for all kinds of market phases as well as for momentum and volatility trading.
Pivot points are a widely followed technical indicator and quite a lot of traders make their trade decisions on the basis of this indicator.
If you have been around in the forex trading space then I am sure that you will have heard a lot about pivot points.
What if I told you that there is an indicator that allows you to identify trends and reversals too and can help you capitalize on every price swing? Sounds good right?
If you some experience in trading then you will have come across the indicator known as Parabolic SAR. It is a basic indicator yet a powerful one that is widely used by traders.
What if we told you that MACD (Moving Average Convergence Divergence) is a momentum oscillator but it does not provide overbought and oversold levels and is rather used to trade trends.
What? A momentum oscillator for riding trends?
Yes, you read it right. MACD is...