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  1. #1
    Active Member ehenderichs's Avatar

    Indicators move the market, so what are the must haves? !!!

    When asking the question how did Fibonacci entered to trading world and why does it work, I was told it was a self fulfilling prophecy.
    Now I am reading Steve Nison's candlestick analysis book and it states you need technical indicators since they move the market.

    Both statements make sense when you think about it. But I guess this also means the move is dictated by the most used indicators and you have at least one of those indicators on your chart. I heard some claims that the 200 SMA is the most used and some even claim it is the only one they use.

    Probably hard or even impossible to know what the most used indicator is but I would like to know you think about these statements.

  2. #2
    Legendry Member Michael Hodges's Avatar
    Indicators can move the market, if they are firing a signal. The more indicators that fire a similar signal the more intense the market movement can be. However, indicators are not the sole mover of the market, just one mover. think about it like this, news fundamentals earnings central banks also move the market, and you need that movement to make the indicators fire a signal in order for them to move the market. So, initially, market movement is based on fundamental and near term market factors that create indicator signals that in turn move the market... the fundies are initial move, the indies are a subsequent move. REmember, most of the time there is only noise moving the indies, making them highly subjective.

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