Which Indicator Works Best in Trading?

If you are still struggling with this issue, it means you are still in the second stage.Why does technical analysis always lose money?

The first stage: I am a novice who has just come into contact with it. Everything I see is fresh and magical. A comparison on the disk shows that it is a standard one, but when I operate it by myself, I don’t know why it always malfunctions.

Second stage:Start studying different indicators, their usage or combination usage. Most people are at this stage.

The third stage: For a period of time, I was very interested in quantitative systems. I dismantled all common indicators and automated trading programs using calculation formulas and codes. I even created many indicators self-righteously. At this stage, I naturally understood the working principle of indicators.

Stage 4: Later I found that all indicators have a common problem, that isHysteresis. Strictly speaking, the candlestick itself is also an indicator of market price, but the candlestick provides real-time feedback, so I slowly embarked on the path of looking at the market through naked candlestick theory in price action theory. It was very painful when I first started learning naked K. I had no reference and I was at a loss as to what to do. So, I adjusted the indicators and compared them with the candlestick. Later, I finally understood the applicability and limitations of different indicators.This stage is about reference indicators rather than relying on indicators.

The fifth stage: Later, I no longer need to look at the indicators, because the information expressed in the candlestick is enough. For example, when I see the weak form of some candlesticks, I know very well that it must be forced on the indicator, so naturally there is no need to call it out on the market. At this stage, I have no sword in my hand but a sword in my heart.

The sixth stage: When you have no sword in your hand and no sword in your heart, you have to jump out of the market and study people beyond the candlestick. This is the great way.