Community Forex Questions
Which indicator do you think is the king indicator?
If you are a short-term stock trader, you should listen to most people's recommendations and focus on those short-term technical indicators. However, because this short-term approach to equities is erroneous, these short-term technical indicators are unhelpful in the long run. Short-term traders always expect to utilise this approach to acquire equities that will climb the following week. Buffett stated, "90% of individuals invest in equities with the incorrect mindset. They require proper guidance." If you work hard, but the research path is incorrect, you will find that the harder you try, the more you fail.
Assume you want to be profitable over time. In that situation, you should pursue the value investment route, focusing on study on the company's fundamentals, carefully reading the company's financial statements, and analysing numerous accounting indicators. The return on equity should be the key indicator. Buffett once stated that if he could only consider one investment measure, he would select ROE. Munger, his gold partner, also stated that we are not far behind ROE in the long term.
Assume you want to be profitable over time. In that situation, you should pursue the value investment route, focusing on study on the company's fundamentals, carefully reading the company's financial statements, and analysing numerous accounting indicators. The return on equity should be the key indicator. Buffett once stated that if he could only consider one investment measure, he would select ROE. Munger, his gold partner, also stated that we are not far behind ROE in the long term.
There is no single "king indicator" that is universally considered the best for all trading purposes. However, some of the most popular and widely used indicators include:
Moving averages: Moving averages are simple technical indicators that smooth out price data by calculating the average price over a specified number of periods. They can be used to identify trends, support and resistance levels, and potential entry and exit points for trades.
Relative strength index (RSI): The RSI is a momentum indicator that measures the speed and magnitude of price movements. It can be used to identify overbought and oversold conditions, which can signal potential reversals in price trends.
Moving average convergence divergence (MACD): The MACD is a trend-following momentum indicator that compares two moving averages of price. It can be used to identify trend changes, potential reversals, and buying and selling opportunities.
Stochastic oscillator: The stochastic oscillator is a momentum indicator that compares the closing price of a security to its price range over a specified period. It can be used to identify overbought and oversold conditions, which can signal potential reversals in price trends.
Bollinger Bands: Bollinger Bands are volatility bands that are placed around a moving average. They can be used to identify overbought and oversold conditions, which can signal potential reversals in price trends.
Ultimately, the best trading indicator for you will depend on your individual trading style and preferences. It is important to experiment with different indicators and find the ones that work best for you.
Moving averages: Moving averages are simple technical indicators that smooth out price data by calculating the average price over a specified number of periods. They can be used to identify trends, support and resistance levels, and potential entry and exit points for trades.
Relative strength index (RSI): The RSI is a momentum indicator that measures the speed and magnitude of price movements. It can be used to identify overbought and oversold conditions, which can signal potential reversals in price trends.
Moving average convergence divergence (MACD): The MACD is a trend-following momentum indicator that compares two moving averages of price. It can be used to identify trend changes, potential reversals, and buying and selling opportunities.
Stochastic oscillator: The stochastic oscillator is a momentum indicator that compares the closing price of a security to its price range over a specified period. It can be used to identify overbought and oversold conditions, which can signal potential reversals in price trends.
Bollinger Bands: Bollinger Bands are volatility bands that are placed around a moving average. They can be used to identify overbought and oversold conditions, which can signal potential reversals in price trends.
Ultimately, the best trading indicator for you will depend on your individual trading style and preferences. It is important to experiment with different indicators and find the ones that work best for you.
Jun 02, 2022 12:23