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InsiderB
Jun 17, 2017 1:30 PM

Nifty : More with Indicators & Stuff ! 

Nifty 50 IndexNSE

Description

Indicators ??? On InsiderB post ?! Oh yes & It's not by mistake, for the purpose of explaining few things to the community. The wide spread view on Indicators be it RSI, Macd, stochastic or any indicator is that they lag & always come behind price action, they fail, can't be used for counter in trending markets, n lot more. But, Does any of the strategy out there works 100% of the time without failures ? In the same way Indicators do fail at times & work at times but if the same indicator is used with discipline without switching from one to another every week/day, you will be doing good at trading.

So all of sudden I support Indicator usage ? I support all kinds of trading except gambling without a plan, its just that most of times I don't use indicator to take a trade, for very few setups only I look for RSI else none only price action. During starting phase of trading its more than welcome to use an indicator. Why ? Bcos it takes out the confusions for you indicating a direction for you, leave about trade fails or wins, if the same indicator & setup is followed every single time you can simply make money with an Indicator & moving averages. Bcos the winners will compensate the money you lost but only thing same process needs to be repeated for trading every single time.

Marked those 1 & 2 just to show how they work normally, 2 being normal scenario they are well aligned with price & as price moves down, Indicator also goes down. But look at 1 . those are opposed, its divergence. The zones marked ( circled white), first two worked n next failed. There is Normal divergence & Hidden divergence and if you google you will find those variations & there are different school of thoughts which conflict which each other calling same divergence as Bullish & Bearish. And, last point as I shown Macd, it doesn't mean I'm following it :)

Points to take home :
i) Indicators has its flaws, Not failure
ii) If followed consistently it makes money

InsiderB


Comments
AMBRISH
Indicators ??? On InsiderB post ?!
I am surprised but liked it.
InsiderB
@AMBRISH, Thanks boss !
pankajjalan24
Well scripted !Very few can be a candle who spreads light all around
InsiderB
@pankajjalan24, Thank you :)
DSKF16
I think Indicators are essential supportive Stuff of Pattern. Like "Flight Engineer" of an Aircraft, where Pattern is PILOT.
InsiderB
@DSKF16, I can't disagree, they are part of trading always :)
DSKF16
@InsiderB, Thank you.
UnknownUnicorn646072
sorry brother ,first time i was joking to you,now realised after watching your posts you are the best in harmonic pattern,among all edition of trading view,this expression from my heart,you deserve only like,and i am weak in harmonic pattern and now learning from your chart,thank you
Sarsans
@rupambose32, hats of to your humbleness. Learning process has no limits. Best wishes
UnknownUnicorn646072
@Sarsans, thank you
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