While each person has their own style – I personally do not use indicators to day trade.
With futures trading, I only use price action, price patterns, and institutional pivots. This suits my trading style. My belief is that anything can be used effectively – if given enough time (but, no one ever seeks to commit the time needed).
Nothing is 100%
Since nothing is 100% anyways – I committed my time to learning something universal which I could apply across everything that I trade- stock, options, and futures. With my success in this direction – I have never sought to replace what works and works well.
Just pick something and stay with it
For those who are new and do not have a path yet – think about the commitment required to learn anything in life. Months and even years can be spent dialing in an indicator or indicator combination and if you picked any of the day trading indicators – you will be successful.
Secrets
There is no secret combination because there is no secret at all. So, if indicators are where you want to focus your attention then give it the time and the respect that anything deserves. Be prepared to read books, watch videos, and spend months learning all about the indicator you want to use in your day trading.
Go! Time
While I do not use “indicators to take a day trade” – I use indicators to make a decision about a trade I want to take. Custom studies that measure things and plot a marker onto my charts – this is the very definition of an indicator; I use things like Open Range and Institutional Pivots.
Trade Triggers
I do not trade just because price reaches these levels, I do not take a trade just because price interacts with these levels – but, I use them to inform me about my bias and help me determine if a strategy will succeed or fail. Every person needs to determine what the trigger is to take a trade and then follow through with a developed plan. For me – the trades that I take have specific signals which come from the things I spoke about above.
Multicollinearity
As with anything – persistence beats resistance. If you are committed to using indicators, do not give up and do not keep moving to different indicators. Understand what Multicollinearity is and why it matters to you.
Final Thoughts
It does not matter if you trade with price action or indicators (or both) – it matters if you commit the time and the resources required to become a master at your craft. Focus on your style of trading and on developing something that works for you – because I promise that you are the only one who can effectively build your trading strategy.
Coaching
Want to learn the trading strategies that Signet uses in his playbook? Are you interested in building your own playbook? At the OEC – Signet will help you learn his strategies and personalize them to suit your unique trading while also teaching you the tools required to begin developing your own trading style. Reach out for a free consultation today!
