The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. Essentially, when traders use indicators to make their trading decisions, they are getting a distorted view of what a market is doing. So, essentially, the only real use that lagging indicators have is in helping to identify a trending market, tax rules for forex trading I do actually use certain moving averages to aid in trend identification.
The problem is that no one ever knows how long a market will trend for, so you are going to have a ton of false signals before the actual top or bottom of the market occurs. Let’s take a look at the way many traders try to trade with lagging and leading indicators all over their charts, and then let’s compare this to trading with nothing but a plain vanilla price chart and price action. MACD, Parabolic SAR, and a few moving averages. You can quickly see just by looking at this chart how confusing it is, and you can also see that there are a lot of unnecessary variables on this chart.