Ask Colin

When you say that you don't use any indicators in your trade decision, does it mean that indicators are not useful?

What you need to realise to understand my view is that all indicators are derivatives of price. I find it better almost all the time to trade the price directly.

You will see long and short term moving averages on my charts sometimes. Especially 260-days, which I use to smooth price and show the long term price cycle. But I do not trade it - that is, it plays no part in my entry and exit decisions.

You also need to appreciate that I am a position trader. Day traders and very short term traders, who do not have intraday data, or where markets are not very liquid, may need to use indicators. However, I find this a very difficult way to make a living. Plenty of thrills and stress, but not much cash profit.


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