Jump to content

Technical indicators are lagging

Recommended Posts

I don't use indicators in my trading, these indicators are lagging, and they provide information too late to be profitable.I have made many custom indicators almost 150 of them, so I know all about indicators.




 I get information from simple trend lines, channels and support/resistance by looking at 4 hour and daily charts, and behavior of related instruments .An example of this is Dax and ftse have to give similar confirmations on both charts  of subjective behavior patterns.I like  all US indices to be positive to place a trade on ftse  /dow or dax .None of this value added information I see , beauty is in the eye of the beholder, can be put into reliable accurate indicators.


Indicators rely on market timing, if market timing is difficult, then indicators are impossible to make money from.

Indicators based on Price action rely on timing the markets , but this has been proven to be too difficult for most , according to this article below and free google searches .





Indicators rely on being reality with the markets , and this article on t2w examines why traders are not in reality with the markets.The psychology section on this site explains :





Using indicators will create a lot of psychological issues, that most new traders are not aware of.Indicator users are taught by non traders, who are not successful at  trading and don't know how to really get an edge in trading.There are many people who gain, when you lose, so they would rather influence  you how to use indicators  and lose money.The forex bucket shops make money,if traders lose.


One of the reasons why traders fail is ,they are taught to use lagging indicators, that fail to give timely signals.




Keep trading simple stupid.Don't allow failure of indicators to arouse "the enemy within".




Here are simple set ups using trend lines, support and resistance ,that make money more than 50% of the time, if market correlations are applied.




keep it simple stupid like the chart below

ftse price action 2.jpg


support trades 


ftse entry.jpg


support trading on ftse 








failed indicator trades









Link to comment

Of course trendlines and support and resistance levels are indicators that lag most of all because they are actually static. The most important feature in an indicator is that many traders use/see it, when they act on what they see then what is indicated becomes a self fulfilled prophecy. See the 1 hour bars on the dax chart yesterday, they were clearly reacting to the 100 MA, they even follow the curve and note the power of the bull bar needed to break through. Big players were looking at it and reacting to it.


Where people run into trouble is when they pick out some obscure pattern from within the noise and against the run of play that no one else can see or is even looking for and then desperately search for some kind of indication to back up the bias. That's when indicators, be they static or dynamic don't work.   




Link to comment

Nice to see I G don't teach  indicator usage, but they provide them in their charting packages.




Support and resistance levels are indicators that don't lag ,they are true areas of supply /demand, with overshoots in increased volatility.A support area is an area of demand, where investors are currently  willing to buy.



Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...