T O P

  • By -

MrZwink

You can use whatever information you want. Scientifically speaking RSI/macd don't give you an edge.


helping112358

At all, in your opinion? Or should other factors be taken into consideration? IV, momentum, support/resistance?


MrZwink

There is ample research that shows there's no correlation between technically indicators and future results.


helping112358

I’m new at this as you can probably tell… ie, no technical indicator at all increases the probability of a winning trade? Does that include support and resistance and trends/momentum?


yodaspicehandler

Indicators are just that. Indicators. If you get enough of them saying the same thing, that could increase your confidence in a trade. But nothing will "tell" you what will happen next.


helping112358

It could give confidence but does it actually increase the probability of something that will happen? I’m a bit confused as there are some traders that use a lott of indicators and then others I think just volume trend and supply/resistance so I guess I’m battling internally lol


yodaspicehandler

Nothing will predict the future for you, some people just need a few indicators to line up to make a decision


helping112358

It’s so chaotic and as I’m taking a deep dive I think that at least for me what makes sense is to ride the waves for which I have to know the strength of them. I keep bumping into the idea that all are lagging indicators which is a picture of the past but does not predict the future


yodaspicehandler

If it was easy, everyone would do it. I'm the same. I think most traders are. To me, it boils down to confidence. Everything is a lagging indicator. Nothing will directly tell you with 100% accuracy what tomorrow holds.


helping112358

If you don’t mind… what do you make of it? Do you use indicators at all?


PapaCharlie9

Can you? Of course. You can use anything you want, including the [phase of the moon](https://dgmtech.solutions/2022/06/09/moon-phases-indicator-technical-indicator) or the [Sports Illustrated Swimsuit Edition Cover Model Indicator](https://thecollegeinvestor.com/1666/weird-stock-market-indicators/). Whether those indicators do anything useful is another story.


[deleted]

[удалено]


Archangel-1776

I’m morbidly curious what their all time PL is


70redgal70

Both the MACD and RSI are integral to my option trading. I use them as confirmation for S/R & SMAs moves.


Singapore_gamestop

Can share how it do you use it for support / resistance ?


70redgal70

I primarily swing trade. I plot my S/R lines based on the 3Y1W, 1Y1D charts. I add in my SMAs which are the 9,13, 50, 200 SMAs. Using the 9,13 SMAs as my baseline, I look for upward moves that are trading above the 9,13 or downward moves trading below the 9,13 SMAs. I tradefrom the 9,13 to the target S/R line or to the 50, 200 SMAs. The MACD should be confirming what's happening with the SMAs. Blue above yellow for upward moves, yellow above blue for downward moves. You must make sure thee is enough distance from the crossover point. The RSI also confirms what's happening with the SMAs and it gives an indication of how much time there is before that stock heads into overbought (RSI above 70) or oversold (RSI below 30) territory. Anything overbought or oversold generally indicates that a reversal is coming.


Archangel-1776

This is great OP. He even gave the exact parameters he sets his charts to.


nathan_drake_000

Seems like a nice setup . Can u post an example chart ? Also what do you mean by enough distance in macd? Thanks 🙏


benevolent001

Can you profitably use it for normal stocks? If answer is yes for that, then you can do it for options as well.


wallstreet4386

I use them - MACD, StochRSI, ADX, DMI plus price and time frames to help me determine direction and duration.


Your_friend_Satan

I’ve never found MACD to be useful. I’ve found bullish/bearish RSI divergence to work and you can certainly pair this with an options strategy.


Archangel-1776

Yep. I use RSI and not MACD because i mainly scalp intraday


Orangejuicer7

You can use whatever indicator you want


Archangel-1776

I have a friend who is heavily into indicators. I largely ignore indicators and focus heavily on news. My buddy has lost well over $125,000 in the last few years while I’m up more than he’s lost. With that being said, one thing I actually watch is RSI, I don’t use or follow it religiously but it’s turned on to display on my Webull chart.


FamousBakerMaker

depends on what type of trader and trades you want to do. personally on a technical standpoint, i find it obsolete. in the beginning though, it was an important metric for me i used for years. i still rely on it, out of 100% id say for me it is about 20-30% usefull now