Are Technical Indicators useless?

[algoBoi]

Hi everyone.

I've examined indicators for very long time. Especially if you are trading often, they would increase your winning possibilities.

While some months i've learned how to code Pine Script on Tradingview and backtest with it. But i can't get good results even if many combination of indicators.    When i look at past data manually, it works smoothly but this data retrospective and indicators can't drawn in future.

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

I'm open to discuss all ideas.  

[1714605996]

1714605996

[Oshosondy]

Indicators can increase the probability of making profit in trading, but it deos not 100% guarantee that if a trader use them to trade, that the trader would win. Indicators are just some things to know in trading but strategies is what that is most important.

If you have 100% money, use 10% or less to trade.
You can start a trade with averaging. If you win, you close the position. If you are losing, you will wait until your indicators tell you to increase the leverage. You can start a trade with 0.2x and increased it to 1x. That is averaging.

Averaging may still fail, you need to not let emotion to control you. Trade with the amount of money that you can afford to lose.

[Faisal2202]

I'm not a trader but I think I can understand the situation you are going through. You must have thought that by doing TA (Technical Analysis) you can predict or guess the future price of some token easily. But the prediction of the market is not solely dependent on TA instead you have to do FA. And if you think that

When I look at past data manually,

Past data works fine for you then you should follow the methods that work for you.

But keeping an eye on the Fundamental elements is most necessary. As if I am trading in BTC then I prefer to be dependent on FA more and less on TA. But just clarify, if this idea works for me then it does not mean that it will also work for you too. We all have different mindsets and different solutions to problems. Then try to do it your own way and do not rely solely on TA or any indicator. Because at the start things are not that straight that you just have to draw some lines here and there and you can time the market accurately.

[cabron]

Whenever there are big investors coming, it's somehow difficult to see the patterns of the indicator's reaction. Normally when RSI says oversold, it has to bounce but it just keeps rolling down, and comparing it to its previous bear market, it's not following the timeline. The market is unpredictable and you'd be surprised if it is instead dwindling down while you go long.

Combined with more indicators, you may find yourself analyzing it too much when in fact you just have to wait and hold. Having too many indicators will prevent you from executing your trade for you will overly analyze the market. They call it Analysis paralysis.

[mk4]

Indicators can increase the probability of making profit in trading, but it deos not 100% guarantee that if a trader use them to trade, that the trader would win. Indicators are just some things to know in trading but strategies is what that is most important.

This. Some people think using technical analysis indicators means that your trades can end up being right with like 80-90% accuracy when done correctly, which is simply ludicrous. In reality, at most, probably a bump up of an extra 5-10% in terms of chances of being right. Doesn't sound that big of a bump, but that extra 5-10% win rate stretched out to hundreds of trades, that number suddenly becomes very relevant.

[palle11]

When i look at past data manually, it works smoothly but this data retrospective and indicators can't drawn in future.

If you want to know what market is likely to do in the future you use longer hour time frame. Weekly and monthly market watch is very important in this. Although the direction can change with news and the whales manipulation which are all part of the trade which makes trading what it is. No technique in trade is perfect to 100% but if you can get accuracy of 50 to 70% then support your trade with stop loss and you are good.

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

I'm open to discuss all ideas.  

Combination of indicators is good because it help in guiding you towards market direction. For example you will be riding on the market like you are on the sky with some gadgets giving you hint on where you are, that is just like trading with the right kind of indicators but to cluster your trade with indicators is to confuse yourself. It is better with few combination of indicators than to cluster yourself with indicators.

[Nrcewker]

Indicators doesn’t mean it’s a sure win. It just helps you to make more accurate and good trades. In other words they just increase the probability of making profit for certain trades. Now if a trader completely rely on it, then nothing can be done. Trading is basically done with market analysis, so if you don’t do the basics and just trade along with the indicators then no one can save you from getting into losses.

[Franctoshi]

We are humans and we don't see everything that is happening in the market just with our necked eyes, There comes the need for indicators to enhance our view of the market and to get a clearer picture of what is happening in the trending market.
Generally, indicators are not useless rather your profitability can depend on how well you use or apply them to your chart.

For instance, I love using Fibbo and RSI indicators. Just by merely looking at the Chart using the market structure and patterns you would have difficulty identifying when the market is oversold or overbought but using an indicator like the RSI spares you that stress, and there is even a way you can twist the settings to your benefit.

[Hamza2424]

Hi everyone.

I've examined indicators for very long time. Especially if you are trading often, they would increase your winning possibilities.
While some months i've learned how to code Pine Script on Tradingview and backtest with it. But i can't get good results even if many combination of indicators.    When i look at past data manually, it works smoothly but this data retrospective and indicators can't drawn in future.
I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.
I'm open to discuss all ideas.  

As Op, you consider that the indicators greatly improve the possibilities and the effectiveness of the speculations but there is a need for proper implementation of the strategy. Most of the time you should not be fooled by the indicators as not of the indicators guarantee efficient results. If the indicators and your implementation have not worked for a long time maybe there is a need for an upgrade in the strategy, or maybe according to the market sentiments you need to review the strategy.

If still does not work buddy you should add a few points to track a few of your old trades and try to analyze what's going wrong, One of the points you are already following asking for mentorship or guidance, lastly you can even consider the diversification on a single position.

[Hamphser]

Hi everyone.

I've examined indicators for very long time. Especially if you are trading often, they would increase your winning possibilities.

While some months i've learned how to code Pine Script on Tradingview and backtest with it. But i can't get good results even if many combination of indicators.    When i look at past data manually, it works smoothly but this data retrospective and indicators can't drawn in future.

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

I'm open to discuss all ideas.  

Technical indicators are relevant because on how you would really be that tending to deal with this market? Via pure guess? Via intuition and guts? Of course you would really be needing on having that kind of

tools or whatever you would really be using which you would really be needing on making use of these technical indicators or else you would really be just simply doing gambling if you do have that kind of behavior on doing trades without using any of those. The most common things which you could really be able to make use in speaking about analysis then it would be TA+FA and since this market cant really be having
that news or sentiments anytime then this is the time you would really be using about technicals. It doesnt works? Yes not all the time but taking up some entries and exits basing up on those indicators is
much more better rather than on making positions without any basis because it is really just that pure gambling.

Bare in mind that it doesnt really give out guarantees that those analysis would be precise or not, market is unpredictable always because if those indicators shows precise analysis
then all of those people who do know on making use of it would be rich by now. 

[Rruchi man]

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

Indicators work well for traders who know and understand them. You simply have not yet understood indicators properly that is why it has not worked well for you. Do not try to understand many indicators at once, make sure you really understand one indicator before you try to learn and understand another. Knowing too little about many indicators will not give you good trading results. Knowing much about a few indicators will increase your chances at having a good trading result.

[Oilacris]

Indicators can increase the probability of making profit in trading, but it deos not 100% guarantee that if a trader use them to trade, that the trader would win. Indicators are just some things to know in trading but strategies is what that is most important.

This. Some people think using technical analysis indicators means that your trades can end up being right with like 80-90% accuracy when done correctly, which is simply ludicrous. In reality, at most, probably a bump up of an extra 5-10% in terms of chances of being right. Doesn't sound that big of a bump, but that extra 5-10% win rate stretched out to hundreds of trades, that number suddenly becomes very relevant.

You would really be able to find for yourself or with your very own eyes on how relevant this thing is.We know that TA's arent really that fully reliable and doesnt work most of the time and i do agree
in some words on here mentioned on some posters above that if it was not really that useful at all then we wont really be seeing those things flooding around or been offered to be a tool.
5-10% profitable chance is already that good compared into having less or just basing up on doing actions without any basis.

On using up technical indicators then it would really basically be showing you some potential entries and exits on which you could really be able to utilize things if you do really have
that knowledge on how to make use of it. You would really be finding its worth on the time that you do step your foot into the trading field. Its not really that something
good to look at on which you are involving yourself in trading but doesnt have the learning and idea on what you should gonna do.

[Questat]

Not all, I say. Why? It was not because we used trading indicators we became successful or earned more, some did it but there are a lot of traders who fail as they don't know how to use it. It needs constant practice and trading experience, so if you are new to trading never think it will work effectively. Technical Indicators become useless if we never use it in the right way and much more if the user doesn't even know to trade itself. But if you have knowledge about it, this will increase the chance of earning.

[jeraldskie11]

Indicators can be used as additional confluence of your strategy to increase it's probability. There are traders who only use one strategy such PA traders, Fib traders, and SNR traders. And also they are profitable. How much more if combined this all in one trade. However, you still have to backtest your strategy because it will not work immediately, we have to filter out what combination of strategy that will work. In this way, the chance of winning in trading will surely increase.

[Bitcoin_Arena]

Not completely useless, but they can guide you how the market might move. Not 100% accurate, as we all know, suddenly the market can change the trend. Technical indicators are more like weather station tools, they can try to help predict how the weather might be based on the patterns and historical data, but the predictions are not always 100%

I use technical indicators mostly to help me with risk management. The goal is to stay longer in the game while making small profits. Not getting rich overnight.

[sheenshane]

I tend to agree with all the comments above, in short, the market is unpredictable.
Technical indicators are just tools that you can use in trading and increase your chances of winning but it doesn't mean it gives you a full guarantee of making a profit.  It is not useless, sometimes traders have a better result upon using this.

It would be good if you would mix it up the technical and fundamental indicators because sometimes the price can be predicted based on previous data as you've said.  IMO, indicators can usually generate false signals, which might lead traders to make incorrect trading decisions, and crypto markets are often influenced by news, social media sentiment, and external events, which can override the signals generated by indicators.

[Ojima-ojo]

Hi everyone.

I've examined indicators for very long time. Especially if you are trading often, they would increase your winning possibilities.

While some months i've learned how to code Pine Script on Tradingview and backtest with it. But i can't get good results even if many combination of indicators.    When i look at past data manually, it works smoothly but this data retrospective and indicators can't drawn in future.

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

I'm open to discuss all ideas.  

As the name implies,  trading indicators are there to provide you with the necessary tool to making a better informed trading decisions,  and this will increase you profit chances,  and it helpful if you are good at a personal analysis of the indicators because, on some occasions,  you may have to adjust some perimeters to set the tone since trading indicators doesn't guarantee 100% profits.


And as a matter of fact,  trading indicators or signals may even be a trader dead trap if not properly and carefully handled and studied,  so indicators are tools to be used in other to speculate the market properly before opening a position.

[gabbie2010]

Hi everyone.

I've examined indicators for very long time. Especially if you are trading often, they would increase your winning possibilities.

While some months i've learned how to code Pine Script on Tradingview and backtest with it. But i can't get good results even if many combination of indicators.    When i look at past data manually, it works smoothly but this data retrospective and indicators can't drawn in future.

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

I'm open to discuss all ideas.  

Don't rely solely on indicators only when taking  trading decisions because majority of those indicators lags, however you only needed one or two indicators probably Moving Averages for trend direction and RSI to determine if price had reached overbought or oversold region, candlestick patterns or formation itself is also a Technical indicator if properly studied, formation of the candlestick patterns and it Price Action around Demand and Supply zones or resistance and support zone will reveal if a price reversal is imminent, however it requires a lot studies to master it and avoid using many indicators because they would give conflicting signals.

[palle11]

Trading is basically done with market analysis, so if you don’t do the basics and just trade along with the indicators then no one can save you from getting into losses.

No hasty trading because hasty trading is likely to put one in trouble. So you have to do analysis of what your indicators are telling you against the market and you watch different time frame too, candles are also good for a good understanding of the market. Basically you have to understand the market using simple indicators to analyze the market so that you can ride it easily. But jumping in without proper analysis, you can't be lucky all the time.

[dansus021]

Indicators can increase the probability of making profit in trading, but it deos not 100% guarantee that if a trader use them to trade, that the trader would win. Indicators are just some things to know in trading but strategies is what that is most important.

100% agree
This is the point of indicator and that is why it is called an indicator guys It only indicates a possibility and I do believe there is no indicator that 100% works all the time Basically what makes an indicator work is that people believe in it.
In my opinion.
Let's say there are 1000 people who that believe when ema 100 crosses above ema 200 is bullish or what we usually call the golden cross when there are a lot of people who believe it tends to bring the prices up. so when people do not believe it much or there is another thing the golden cross could actually fail.

Backtest is the best way to indicate how much win percentage that tells us how the indicator works.

If you think indicator useless or you scary to take the riks dont take futures trading or dont take trading at all