What the industry doesn't tell you about indicators...

Hey Traders,

Let's get real about indicators.

Many of you will want to crucify me for this because you love your indicators.

Hear me out, though.

You see them plastered on traders' charts like a bad case of teenage acne. I remember the days. I even upgraded my Trading View plan, thinking I needed the ability to add 500 indicators to my chart! 😂

Every wannabe trader thinks they need the latest, slickest indicator to be able to "catch the big moves." Bollinger Bands, RSI, MACD, Ichimoku—sounds like a friggin' Pokémon lineup out here.

Here's the brutal truth (or at least it has been for me): there is no indicator out there that's gonna save you in this treacherous game.

Here's the elephant in the room: most traders use indicators as a crutch. I know I did. Come on, don't lie to yourself. Are you really using it to shortcut insights you already know how to read manually? Sure, for some. For most though, no way. The worst part is that most traders aren't just using one crutch. They're hosting a whole damn hospital's worth of medical paraphernalia. You've got your RSI screaming short. Your MACD shouting long. Your Fibonacci retracement looking like a drunk spider's doodle.

The reality is, indicators are lagging, and lacking. By the time your precious tool has told you whether to buy or sell, the smart money illuminati (lol) have already swept in and kicked the bejesus out of your entry. Good job, kid.

I always thought indicators gave me some kind of magical insight, a special edge that nobody else had. "Ha! I spent $1500 on this, bro! Nobody else is spending that much on an indicator, I've got it in the bag now!" No kid. You do not have "it" in a bag. Your bag is bog.

Indicators give us historical data. They're telling us what already happened. Not what's going to happen. Try driving your car whilst looking at the rearview mirror, yes. That's your trade.

Ever heard of the cognitive bias trap? No, you ain't. You're too busy adding indicators 😁 kidding. Confirmation bias is when you only see what you want to see. If you're bullish, you simply cherry-pick the indicators that confirm your bias. You are not predicting. You are VALIDATING your preconceptions... but the market doesn't give a swizzle about your preconception.

Let's get back to basics. K.I.S.S. Keep it simple, Suzy. Price action and market structure. These two things for me have been absolutely vital for my success. Whenever I come across anyone new in this business, I scream these two things: PRICE ACTION. MARKET STRUCTURE.

Learn how to read the charts, without indicators.

Many people think this is really difficult. I did. I used to think I was too dumb to read charts. Now I think I'm a dumb guy that can read charts!

Here's your protocol:

1. Understand market structure.

2. Figure out supply and demand areas.

3. Learn price action.

I've added that second step in because knowing key levels is what makes price action relative to your trading. Otherwise, you'll never really see how PA moves when it's "doing what it should do".

Indicators give you a false sense of security. You think you're hedging your bets, but actually, you're just piling on a bunch of confusion. Every indicator is just another piece of data your brain is trying to compute before making a trade. And let's be honest... you're already overwhelmed! Paralysis by analysis is a real thing, and it sucks. Self-inflicting paralysis by analysis is a recipe for terrible trading decisions.

Ever heard of market conviction? You need it. You need it in abundance. You know what totally wrecks conviction? Confusion. How can we confuse ourselves? Too much information.

Here's the final thought. The market moves on supply and demand, liquidity, and the psychological state of its participants. Read it again. Indicators are shiny objects that keep you distracted from what really matters... Price action.

Here's how you can use indicators:

1. Strip your charts naked.

2. Learn market structure.

3. Discover supply and demand zones.

4. Recognize price action.

5. Start winning trades.

Then... and ONLY THEN, use an indicator that is in line with your strategy to speed up, or simplify your analysis. For example, I occasionally use a supply and demand indicator to help me very quickly locate those key areas. Once I have them, I delete the indicator. Do I need it or rely upon it? Hell no. Am I lazy? Of course, so I tap that sometimes.

The best traders don't need indicators. Neither should you, if you want to nail this game. Remember. Less is more.

Cue jokes about how convoluted this post is.

Happy trading, filthy traders.

PS. If you want to connect with me and my trading comrades, where we share trade ideas, strategy, and more, then you should join our free discord community here.

Connect with me when you’re in there, and maybe we can jam on a livestream ❤️