Ineffective Trading Indicators

How do you view your trading indicators?

Let’s take RSI for example.

Ano ang understanding mo sa RSI?

Yung 70 is overbought and 30 is oversold right?

Some traders see 70 as sell and 30 as buy.

I have corrected this many times but this time ay isusupplement ko with a different explanation.

RSI 30 is not a buy signal. It just show na currently eh mas maraming red close ang stock na yan meaning marami nagbenta sa lower price.

Same goes sa RSI 70.

They indicate a status.

They do not give out buy and sell orders.

Now, paano kapag nasa RSI 30 na at may reversal candle?

Buy signal na ba?

Ok let’s take it a step further.

Nasa RSI 30, May reversal candle at may bullish cross ng MACD.

Buy signal na ba?

Confluence na yung tatlong indicator eh.

Buy signal na ba?

If you said yes then mali ka.

You are looking at indicators the wrong way.

Yung mga indicators ay nag iindicate ng status.

Aid yan sila sayo on making a good trading decision.

Bago ka magdecide na bumili ay risk dapat ang titingnan mo.

Pwedeng lahat ng indicators point out na bullish ang galaw ng price yet you will be buying that stock at above 30 percent risk.

Any trade can fail.

Pwede nga na 10 indicators ay may confluence.

Sinasabi nila na umaangat ang stock price and then boom!

Sell off like crazy!

Indicators are not something that works or don’t work, but simply provide you with information.

Maraming bagay sa trading especially when it comes to Technical Analysis ang may misconception ang crowd.

We will remove those misconceptions at ignorance sa June 25-26 sa EXTREME TECHNICAL ANALYSIS WORKSHOP.

I’m inviting you to join us. Register here: https://forms.gle/2JaAURooLVCqkSC17