Short excerpt from a YouTube video by Kardec Trader arguing that trading indicators are lagging tools that only reflect price after it has moved, and therefore should not be expected to provide perfect entry and exit signals. The clip features two speakers discussing personal experience of over-relying on indicators and advising traders to treat them as secondary, not forward-looking, tools.
Even when I first started trading the first thing I would do is I would go add so many indicators to my charts and be.
Like this indicator is going to tell me this, that indicator is going to tell me this and it'll give me the perfect entry and exit.
It just doesn't exist. The problem with indicators is that they are lagging indications of the market. Like indicators showcase their movements after price has formulated. So think about that for a second. Price needs to formulate and then indicators start moving as the way they will be according to price. So indicators, you can look at them as cool training wheels but indicators, indicators are not a forward moving indication of what will happen. It does show you what has happened and you can kind of gauge off that a little bit. But don't look for indicators as like the main thing to help you identify where to buy, where to sell and just get the perfect entry and exit signals because once again that doesn't exist.
