Indicators can be a great addition to your trading methodology. But they can also ruin even the best trading approach if you don’t know how to use and / or combine them with other tools in efficient ways.
In this article, we provide you with a realistic view of trading with indicators, how to choose the right one and which indicator mistakes to avoid.
Do you know your edge and trading strategy?
The biggest mistake traders make is that they try to be in the market and find trades all the time. The professionals, on the other hand, know exactly which market circumstances favor their trading approach and then choose their tools accordingly.
If you are a trend-following trader, you should look at momentum indicators and stay away from oscillators. When you are a range trader, on the other hand, momentum indicators won’t improve your trading and you have to pick from oscillators.