What is Forex Indicator Really For?

Posted by FarEast

January 14, 2008

Before I began my post, let me ask you a question. Have you ever visit forex trading forum? Usually, the most often opening thread was “What forex indicators”, “Which forex indicator” and something like that. Also another thread that complaint about indicators that does not work for them anymore.

Have all of you ever see someone come in front and explained to all forex trader what indicators are really for and how to use them. You see just about any of the indicators commonly available can be used profitably. It’s just a matter of understanding what indicators are really for.

But this trader is out there searching for the holy grail and will fall victim to overpriced new forex indicators and forex systems to trade them with. Actually, you don’t need a new forex indicator. You don’t need a leading indicator in fact. Because there is no such thing as a leading indicator.

All forex indicator are based on the price action. Therefore they are reacting to price action and there are following price action. It’s like another trader said at the same forum, “…they just model and smooth out the price. They’re just following it.”

So, my advice is quickly and very very quickly take a side tour about forex trading forums and try to avoid them. There are many scammers that can not even trade and will bluff on you. However, that bluffer is not really danger compared to the one that selling the never loss forex system. Sometimes they give advice such a really bad advice even worse then they said “Sorry the indicator or systems do not work anymore”.

Hey guys, you want to be a winning trader right? Starting from now, keep yourself away from such that forums. Its not just wasting your time, they will make you not earn even a single dime in forex trading.

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