Are technical indicators just a way to make trading feel scientific and factual?

[Imogen Beaumont]

Are indicators really helping, or just giving us a false sense of control? Most indicators lag behind price, yet many traders rely on them heavily. What do you think?

 

[Mdraghib]

Absolutely very good question! In my opinion, indicators are very helpful when trading forex or any other type of trading, like stock or gold trading. They help us analyze the market and make more informed decisions.

That said, it’s also true that most indicators are lagging, meaning they reflect past price movements rather than predict future ones. This is why relying on them too heavily can sometimes create a false sense of control, especially for new traders.

Indicators work best when used as supporting tools, not the sole basis for a trade. They can help confirm trends, identify potential entry or exit points, and assist in managing risk. But to be truly effective, they should be combined with price action analysis, market structure, and a good understanding of market fundamentals.

 

[Imogen Beaumont]

Absolutely very good question! In my opinion, indicators are very helpful when trading forex or any other type of trading, like stock or gold trading. They help us analyze the market and make more informed decisions.

That said, it’s also true that most indicators are lagging, meaning they reflect past price movements rather than predict future ones. This is why relying on them too heavily can sometimes create a false sense of control, especially for new traders.

Indicators work best when used as supporting tools, not the sole basis for a trade. They can help confirm trends, identify potential entry or exit points, and assist in managing risk. But to be truly effective, they should be combined with price action analysis, market structure, and a good understanding of market fundamentals.

I get that indicators can help, but since they’re always lagging, they often just confirm what’s already happened. That can give a false sense of confidence if you rely on them too much.

 

[TradeWizards]

Are indicators really helping, or just giving us a false sense of control? Most indicators lag behind price, yet many traders rely on them heavily. What do you think?

Indicators are very useful when trading Forex, currencies or gold. They help us analyze the market and make more informed decisions. But they are not the whole story.

That is why relying too much on them can sometimes create a false sense of control.

First you need to understand that you are trading in a world of possibilities and no indicator or support or resistance is absolute. However, if you have a pattern for entering and managing positions, you can be successful.

I personally use indicators in Expert Advisors and they give excellent results.
Note that excellent, not absolute.

 

[ArnavDeshmukh]

The indicators can testify your decisions. They are way more useful than what you think!

 

[papaya_financial]

That’s a solid question and one a lot of traders ask at some point. Indicators do lag price because they’re based on past data, but that doesn’t automatically make them useless. They can be helpful if used for confirmation rather than decision-making like spotting momentum or filtering noise.

The real edge comes from understanding market context, price action, and how everything fits together. Tools like Analysis IQ on Valetax can actually help bridge that gap by combining technicals with sentiment and structure, so it’s not just about staring at an RSI and hoping for the best.

 

[Imogen Beaumont]

Indicators are very useful when trading Forex, currencies or gold. They help us analyze the market and make more informed decisions. But they are not the whole story.

That is why relying too much on them can sometimes create a false sense of control.

First you need to understand that you are trading in a world of possibilities and no indicator or support or resistance is absolute. However, if you have a pattern for entering and managing positions, you can be successful.

I personally use indicators in Expert Advisors and they give excellent results.
Note that excellent, not absolute.
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But I think I am always behind the market when I make decisions based on them.

 

[Imogen Beaumont]

The indicators can testify your decisions. They are way more useful than what you think!

In what way exactly?

 

[Imogen Beaumont]

That’s a solid question and one a lot of traders ask at some point. Indicators do lag price because they’re based on past data, but that doesn’t automatically make them useless. They can be helpful if used for confirmation rather than decision-making like spotting momentum or filtering noise.

The real edge comes from understanding market context, price action, and how everything fits together. Tools like Analysis IQ on Valetax can actually help bridge that gap by combining technicals with sentiment and structure, so it’s not just about staring at an RSI and hoping for the best.

I’m on the same page with you. But sometimes I come across trading journals from random people that are packed with all kinds of indicators, and it makes me wonder doesn’t relying on indicator signals put you a step behind the market?

 

[ArnavDeshmukh]

In what way exactly?

They testify if your analysis had been right or wrong. Take RSI for example, you can always check it to see the strength of a current trend. You can use that knowledge to make a better decision.

 

[Imogen Beaumont]

They testify if your analysis had been right or wrong. Take RSI for example, you can always check it to see the strength of a current trend. You can use that knowledge to make a better decision.

Then, what should you do when your analysis is not aligned with what the indicators show? Should you stop at that point?

 

[Amadeus.V]

To be honest, yes. If you wanna beat all indicators and all analysis, buy indexes. capitalcore has lots of indices without swaps.

 

[ArnavDeshmukh]

Then, what should you do when your analysis is not aligned with what the indicators show? Should you stop at that point?

Trading based on indicators doesn't lead you to profit. Trading is multidimensional, indicators play their own part. There are news events that can change everything and not care about the technical analysis we had been using.

 

[Imogen Beaumont]

Trading based on indicators doesn't lead you to profit. Trading is multidimensional, indicators play their own part. There are news events that can change everything and not care about the technical analysis we had been using.

Then how do you make sure when to trade and when not?

 

[Stratocracy]

Indicators can help, but don’t depend on them too much. They’re tools, not magic. Most show what’s already happened, so if you rely on them too heavily, you’ll always be a bit late. I just use them to confirm my trades, not to predict.

 

[eleanorkim]

Most indicators just lag behind price. They can help spot trends but relying on them too much gives a false sense of control. I mostly use price action and key levels instead, feels way more real.

 

[ArnavDeshmukh]

Then how do you make sure when to trade and when not?

You can't be sure of anything when it comes to trading. The market can surprise you with all sorts of thing. all you can do is to figure out which possibility could be more probable.

 

[Imogen Beaumont]

Indicators can help, but don’t depend on them too much. They’re tools, not magic. Most show what’s already happened, so if you rely on them too heavily, you’ll always be a bit late. I just use them to confirm my trades, not to predict.

I guess using them for confirmation id the best choice then.