Mar 25 2020 04:15
@Tyra Baylee, What you need to remember is that indicators are only tools, sometimes they are accurate, sometimes not. Prices cannot be dictated by indicators. The indicator can be wrong if there is HIGH news. This means that the indicator can be hit by the strength of the BUYER and SELLER. Just a suggestion, Better to learn the power of BUYER and SELLER first.
Mar 26 2020 06:18
After I learned a lot, it is true what you said before that determines the movement is the strength of buyer sellers. But the problem is, there is no indicator like that, while traders want to get direct instructions to open orders, as technical indicators do.
Mar 27 2020 12:09
@Jasmin Constantia, Yes, the market is the king, there is no one who can predict 100% of their movement next. That's why we need to analyze the market using technical and fundamental before open a position.
Mar 29 2020 03:11
@Tyra Baylee, What you are asking about is position timing. Based on my experience, this is the most difficult thing, because we can never really be sure that our entry is 100% profitable. To be able to know the timing of the market, we need to master the basics of price movements such as trends, level areas, and reversal price signals/signs and how the market signs are experiencing momentum.
In this case, you can use technical indicators as a tool in reading the market. Thus, to read prices correctly, you must thoroughly understand the indicators used. Broadly speaking, there are 3 indicator functions:
1. Reading the trend
The trend indicator that you use is the Ichimoku indicator.
2. Price level
You do not have an indicator to read a price level with a potential reversal. Parabolic SAR and MACD cannot be used to read price levels. You can use the RSI as a sign of an oversold or overbought area.
3. Signal entry
The parabolic SAR indicator can be used as an entry signal according to the trend.
By mastering the three uses of the indicators above, you can reduce your entry errors. However, never expect any loss because trading is a business based on opportunity theory. Neither one can get a 100% win rate in the long run. The key is profit consistency, not big profits but big losses in the end. To get the consistency of profit, in the long run, our trading must have a positive expected value. The expected value consists of a win rate, loss rate, average profit and average loss.
Expectancy value = (winrate x average profit) - (lossrate x average loss)
A trading system that can be profitable for the long term has positive expectation values.
