Price First, Indicators Last
The basic information gleaned from a chart w/ no indicators is so undervalued by people today because they just don’t know better. When most people look at charts they have so many indicators and overlays on them that they don’t give themselves a chance to learn to actually see price pattern. Their so quick to lean on technical indicators to help them discern direction that they start to rely on these secondary, even tertiary mathematical measurements of price before they even learn about a market’s internal structure. It’s no surprise that Welles Wilder, the father of the RSI, ADX & SAR technical indicators said that his most valuable skill was copy writing – writing ads! Now don’t take me wrong…Wilder is a real deal trader, and there is definitely a place for technical indicators, and those that measure momentum in particular, but when it comes to learning to trade, technical indicators should be taught last! Throw in people’s penchant for trolling lower time frame charts to satisfy their impulse needs for excitement, and it’s no wonder so few get to eat the lunch of so many!
Jay Norris is Chief Market Strategist at Clovernest Financial Group, and the author of Mastering the Currency Market, McGraw-Hill, 2009.
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