Query by Robert: Why do technical indicators matter in forex trading?
It’s not like there is a fixed supply of currency that speculators can bid up or down, is there? And even if they could, if they bid up USD/GBP to like ten, for instance, it really is not like you could abruptly have ten instances more acquiring energy when you are in London?
That does not really answer it at all. Forex charts need to be more like random walks with the occasional spikes due to planet events/central banking policy, and I nonetheless think absent of those variables there need to be no such issue as “getting on momentum” or MACD or other stuff like that.
Answer by David
Why do technical indicators matter? They are indications of probability.
We are all searching for some tiny edge, some advantage, some piece of expertise that we can profit from or preserve from losing. How do you know where to place your cease loss order if you have no indication of where to put it? Why does supply and demand matter or assistance and resistance? Otherwise, if you operate from lack of understanding then nothing at all matters and it is all just chance, like evolution.
You are very confused and have a lot of studying to do if you want to proceed with investing on your own. Trading is a totally different matter, not advisable for beginners unless you want to dedicate oneself and sources and years of finding out to it. Hint: most of it is becoming a specialist danger manager. How can you do that with out technical indicators and approaches to measure probability?
A trader is certain, precise and focused. You are posing false and general statements as inquiries.
Forex is a fool’s game correct now anyway, even for an experienced trader. It really is crisis driven, debt driven, or gov’t driven, based on the moment. Inform me what, please, if something, there is to concentrate on right here. Fits and starts and stop gunning and a lot more intervention are not perceptible until after the fact, even though searching at the chart (by means of the eyes of a newbie) it appears tradeable.
So, your query genuinely isn’t “why indicators matter.” You’re really trying to make a statement that indicators and TA don’t function, and only random stroll “matters”, when truly, you never have a clue what matters and what doesn’t, or to whom or why. Try to clarify in your personal thoughts what it is you do not understand, and then ask a distinct question.
Forex is a trading arena, not typically for investors. The only mindset that “matters” in forex is that of a trader. Here we have a disconnect, simply because most investors do not get it and do not belong in the forex arena. You are searching at an airplane for the 1st time and telling absolutely everyone that man can not fly, but you don’t know why and cannot explain why, but nonetheless you contend that airplanes don’t matter, which truly isn’t even a query.
When I see momentum increase, I see risk boost, but also far more possible. It is a measuring tool, that is all. Your depth of information about the tool and diverse approaches it can be used and applied to trading, or even the reverse of that, like fading momentum to improve probability, is what truly “matters”. If you’re going to be, non-specific and inaccurate and basic and normally opinionated with out legitimacy, then you deserve the common, non-specific and sometimes inaccurate theory of random walk, and can easily accept opportunity as your only choice. But scoffing at millions of other individuals that use trading tools everyday only exposes your confusion and lack of understanding.
The newbie doesn’t understand the mechanics, methods and strategies of trading. You can object and fault and even disagree with mathematical science and probability, but as shown by you, you can only do so in a general, non-particular way that is inaccurate.
A trader is particular and correct and focuses on detail (it’s obvious you are not a trader). A trader focuses on threat. How are you going to do that without having measurement tools? You never have a clue what I am even speaking about, do you? My fault for not explaining it far better.
What is it that you have here to focus on in Forex? The next crisis or report or modify in interest prices? The subsequent bozo politician altering the ground rules? It really is not even worth discussing. Neither is random walk unless you want to get into the specifics of the mathematics.
What “matters” is what makes a profit.
What do you consider? Answer beneath!