So many people want to know what’s the best trading indicator you can use? Well….if you’ve been on one of the many trading forums that there are on the internet, I’m sure your head must be spinning as to all of the indicators that people use. You’ll find info on the generic indicators like stochastics, as well as all the proprietary indicators that people create. It seems like on these forums, people talk more about indicators than they do trading.
Why do you think that traders are so fascinated with indicators in the first place? Simple….they’ve done all the supposed “work” for you already. You, as a trader, can basically trade on autopilot, just like a robot would. You can slap a couple of these lagging indicators on these charts, and BAM…you can turn your brain off to the market and only buy and sell when your indicators tell you to. I don’t mean to mock it, but that is the reason why most traders use indicators.
So the question remains, if trading the forex market is so mechanical, then what’s stopping a child from trading it. After all, there really is no analysis being done. All you are doing is waiting for your indicators to give you a signal.
Any way you slice it, there is going to have to be some kind of discretion or analysis that the trader is doing. The answer to “what’s the best indicator” is “none”. Looking at a simple price chart and understanding price action is one of the best things a trader can do.
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