Forex traders often wonder which is the best forex indicator? Is it Stochastics, with it's ability to tell you when a price is overbought or oversold. Is it the MACD, which let's you trade using price divergence. Or perhaps it's the moving averages, which many traders use as crossover systems.
The answer is that none of them provide any kind of insight to the market. In fact, they are only useful for telling you what has already happened in the market. Seems kind of meaningless doesn't it?
Yet traders, every day are overflowing their charts with this useless information. Sure, it may look pretty to have all those lines, colors, and figures on your charts, but what purpose do they actually serve?
The truth is no indicator could even come close to what you could see. Remember, indicators are nothing more than fancy formulas. They react to the market the same way whether its ranging or free falling. Do you really think the markets were meant to be traded that mechanically? I don't think so.
You have the ability to see the market from a much more subjective and analytical place. Instead of letting your indicators make the decisions for you, you should be the one calling the shots.
This has to start with the ability to trade price action movements. The markets have these rhythms that most traders never bother to learn. There are inherent patterns in the market which can be seen everyday. All you have to do is take the time to learn them.