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    Tuesday, November 27, 2007

    My view of Indicators

    When I first started trading I used about every technical indicator under the sun. The problem I found was that they had conflicting values. What this means basically is that one indicator would be flagging a buy signal and the next a sell. I was so keyed towards looking at the indicators that I totally neglected price action. Well, after several frustrated months of this I decided to turn them all off and just look at the naked chart. To my surprise I started seeing things clearer. I found a guy named Dave Landry and watched some of his presentations and liked what I saw. It was at this juncture that I new my struggle with indicators was history and I’ve not looked back. I’m not against indicators and if you use them more power to you, but as for me they clouded my judgment and had me focusing on the wrong things. Most do not understand how the indicators they use are formulated and or really how to use them. In fact indicators are all derivatives of price. I think most beginners go through this indicator phase and think they must be the true secret to market success. I would be willing to bet if you turned off everything and just focused on bar charts that after a while you would see what I’m talking about. Problem is most are narrow minded and want to see entry signals every few minutes, thus leading them into the overtrading mode that wipes out hard earned cash.

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