The Most Reliable Technical Indicator
Ano para sayo ang top 2 or top 3 na pinakareliable indicator?
RSI?
MACD?
DMI?
VWAP?
I have studied Technical Analysis for over 15 years and have made a lot of books about it.
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I found out that there is no such thing as a reliable indicator.
Think about it. Lets say RSI is a reliable indicator. Kung lahat ng traders gagamit ng RSI, hindi na ito magiging reliable.
Why?
Kasi sabihin nating pag RSI 30 ay buy at RSI 70 ay sell. Since lahat ay alam na ganun, yung iba RSI 35 pa lang ay bibili na at RSI 65 pa lang ay magbebenta na. Then yung iba naman ay uunahan yung mga nagtry mauna kaya RSI 40 pa lang bibili na at RSI 60 ay magbebenta na. Then, RSI won’t be reliable anymore.
Should you still use RSI?
Well, yes you can pero not sa way na ginagamit mo.
Technical indicators should be used as indicators and hindi as predictors.
RSI 30 tells you na oversold na ang stock, currency pair or coin. That’s it. Walang “RSI 30 na kaya aangat na yan.”
RSI 70 tells you na overbought na ang stock, currency pair or coin. Walang “RSI 70 na kaya babagsak na yan.”
They tell you something pero hindi niya sinasabe or pinipredict ang mangyayare next.
If you see an indicator as something na nag iindicate at hindi nagpipredict then your views of indicators coincide sa basic rule ng market/trading na no once can predict the future.
You can now use technical indicators as something na pwedeng magbigay ng odds in your favor.
Yung success ng traders ay hindi entirely nakarely sa indicator na gamit niya.
We could both use the same indicator but we might have a different result sa trading dahil sa different understanding at approach natin sa trading.
If we both use RSI and you operate sa idea na RSI will tell you what is going to happen next then mauubos lang ang pera mo sa trading just like 90% plus ng mga traders.
Indicators do not need to be reliable. They just need to indicate. If you use them as part of your trading system and that trading system respects the idea of trading na no one can predict the future ay powerful tool ang technical indicators.
If you operate sa idea na walang nakakapredict ng future sa trading ay gagawa ka ngayon ng system around that idea.
“Okay, so if I cannot predict the future then I need to prepare sa worse-case scenario lagi every trade kasi pwedeng di umayon sakin ang trade.”
If you approach trading this way then you will start to see what trading really is.
Then you will start to make good money from it.
Like this:
And you will start to produce consistency like these:
Then you will start withdrawing profits from your account like these:
A difference in approach leads to different results in trading.
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We approach trading differently. You must try it and see for yourself how we trade.
If you are not making any progress sa trading mo then you really need to give yourself a chance at something different.
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