Search This Blog


Oscillators in the Forex market

In my opinion, the oscillators are the most useless and harmful of the indicators. In the first place because they put absolutely indefensible (but strictly speaking, a priori wrong), the fundamental idea. Of the indicators of a more useless, only «Indicators Bill Williams», based not put any ideas in general.

So, in fact, based on the idea of all oscillators «Price is always returned». In other words, a priori (axiomatically), it is assumed that when the price goes to a party, it stretches a certain spring, which must return a value back.

That is, it is sort of a force that returns the price in the original position. Moreover, it follows that any price «release» accident.

Of course, no force, to return the price to its original position and there can not be. Moreover, personally I am a supporter of the theory that «if the movement started, it is likely to continue than go back».

Nevertheless, I have been an interesting point: the oscillators, this is the best psychological care for people who need to make ourselves not to close the positions too quickly.

If the trend to Stochastics, which have not yet entered the zone perekuplennosti (pereprodannosti) and not even crossed his secondary line, it does not cover the position will become easier. And the explanation that the position can not be closed as follows: even if it was spring, which returns a value, it is not yet tight enough. And because it's not, and it is too early podavno closed.

This simple philosophy of helping students so much that I became a strong supporter of the oscillators in the training.

No comments: