For the forex faq today, we have a fellow trader asking about the candlestick indicator.
Below is the question:
First of all thanks a lot for the tutorials and guidelines for the new comers. I love the tutorials here and I just wanted to know which indicator would be good to use for a longer time….if we want and I am interested to go with Candlestick indicator. so what you say about this indicator, sir??
Thanks a lot
Personally, I do not classify the indicators into long term or short term as I find that what works for 5 minutes chart can also works for 4 hour chart. In fact, I choose the indicators more on whether they suit certain trading strategy or not.
If you are new to trading, I suggest that you should play around with different indicators on your trading strategy and see if there are any that can help you to fine tune your strategy. At the same time, you will be able to see the indicator at work and have a better understanding of its behaviour.
When I say fine tuning, I am referring to you adjusting the sentivity of your indicator to see if it can help you to improve your trading experience.
As for the candlestick indicators, I believe that you are talking about support and resistance as well as candlestick patterns. In fact, I have introduced one book that I find is very good for those of you who are interested in trading with candlestick indicators in my previour post on how to trade with no indicator.
I myself are using the candlestick indicators in my trading as I find that they are usually leading rather than lagging in nature. However I also integrate them with some forex indicators of my choice so that it can increase my chances of winning in a trade.
If you have visit my website where I share my personal technical analysis, you will know that I talk a lot on the candlesticks and support and resistance.
When it comes to indicator, there is one size fits all indicator, there are some that works very well in trending market but fail badly in ranging market or vice verse. Therefore it all boils down to the trading strategy that you are using.
I hope that I have answered your question and if you guys have anything to add, do give your comments below.