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Technical Indicators – Do they really work?

In this Video:
00:16 An email from Arthur
01:11 Technical Indicators do not help make Money?
03:25 Combining Indicators for Greater Accuracy

Technical Indicators – Do they really work? Well, let’s talk about that and lot’s more, right now.

Hi Forex traders, it’s Andrew Mitchem here. I’m the owner of The Forex Trading Coach and today is Friday, the 27th of November and I’ve had an email here from Arthur, and Arthur said, “Andrew, on your next webinar, can you tell us about what indicators you use. Do you use lagging indicators like MACD and RSI or more support and resistant and pivot point indicators?”

So let me, first of all, share with you my story about technical trading because as you probably know, I am a technical trader but when I started trading, about eleven years ago, I was fascinated by technical indicators. I had never seen, really, much, you know, about them in the past. I was just amazed by how many there were, how good they looked; how varied they looked; how colourful they looked; you know they were a really exciting way of trading. And so, what I did is I studied them, I printed out information about them; I was looking online about them, trying to find out about all the different ways of using technical indicators.

The Truth About Technical Indicators

But what I then discovered over time and to my detriment is that I really didn’t make money by trading using technical indicators, the standard technical indicators that all charting packages have. I didn’t make anything. And then, over time, as things developed, I then realised there must be a way of using a certain combination of indicators to make money – has to be! So I had to find it. And I ended up using a great piece of software actually – I don’t use it today but I really did like it – it was called trade station, which I’m sure you’ve probably heard of, and trade station had the ability to have people write code for you and optimize different indicators and go back and back-test to some really good, accurate detail in various combinations. I was making an absolute fo