He insisted that it had to be real time, not lagging and it had to give precise information as to the market position.
Well, my response was the elucidation of the ultimate indicator for every market traded. I explained that it was the only indicator that provided the resolution of the frenzied challenge between bulls and bears in real time with precise accuracy.
This indicator tells you exactly where the battle lines are drawn at any one instant and you can rely upon this indicator to always be correct with no ambiguity.
Predictions of future market moves utilizing this indicator alone are less reliable than suggestions surmised from a diverse set of optimized indicators used by experienced traders to interpolate the future sentiment of any market including FOREX.
However, he was insistent, he knew better than I as his trading plan called for just such an indicator.
When explained however, he was less enthusiastic, you see, the ultimate indicator he was looking for was market price.
The current price in the market is the ultimate indicator as it is the instantaneous agreement between the bulls and the bears and is never wrong.
Future price may suggest that at the time, the bulls may be wrong, or perhaps the bears were wrong about the future, but at that moment, price as the ultimate indicator is never wrong and neither were the traders involved.
The market moves based on this negotiation between the bulls and the bears; the buyers and sellers utilizing their personal interpretation of the chaos surrounding market pricing and acting upon that interpretation as they work out the details of supply and demand.
It’s the agreement between them at that instant and in the next moment, another agreement will be made moving the market forward, never back and never lagging.
Predicting moves from a price position alone is virtually impossible; you must rely upon other optimized indicators, fundamental or technical, to give you the ability to establish a reliable analysis about future price and market trends.
Dr. Bill Williams has developed a trading strategy that utilizes price within the candle to include how it’s moving between individual moments within the market. To be able to trade this strategy, in stocks, futures or FOREX, you have to rely upon careful observation. Details of the strategy will be discussed at another time.
Like everything else that has to do with trading strategies, one specific indicator does not make a strategy. Even so, while price is the ultimate market indicator at any given moment, you still must rely upon your knowledge and experience in the market you are trading to properly position yourself for potential gain.
Learn to read and interpret the vast amount of information constantly provided to you as the bulls and bears fight for dominance and move their instantaneous agreements back and forth in chaotic progression.
Good luck trading your selected market, but be sure to use good money management as all trading is risky.
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