Vladimir Ribakov explains why piling unrelated indicators like MACD, RSI, and Bollinger Bands onto your chart kills your trading. Indicators are just signals that need price action to mean anything. Pick a few that work together, test them, and treat them as confirmation, not the main decision.
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Hello traders, Vladimir here from Traders Academy Club, and in this video I would like to talk about mistake number 3 from my series of videos, mistakes, terrible mistakes that traders do, and offer my trading solutions to them. But before I take it to the next step and dig deeper and share with you my solution to the problem, if you are new to our community, first of all, welcome to our fantastic community. I would like to invite you to subscribe to this channel. Just make sure you also enable notifications and also to join us in, in our trading family in Traders Academy Club. You can follow us directly with the links below this video in the description or in the pinned comment inside the comment section. So what is the mistake I want to talk about today and why do I think it is a problem? The mistake I want to explain about today and to suggest my solutions, it's Too many indicators. Did you ever face this problem? I am sure you did. So let's talk about it, and I will share with you my solutions to the problem as well. And I also would like to say this: the purpose of this video is just to help to those who are facing this problem or other problems, or then do the other mistakes like I cover in all my series of videos about trading mistakes. Okay, I would like to ask your help. If you have a better solution how to deal with the mistake I'm covering, the problem I'm covering, please share in the comment section. Let other traders enjoy your great tips. So the problem, the mistake, too many indicators. Right, what does that mean? And don't get me wrong here because I myself am a fan of indicators, okay? The problem begins when you give too much respect to an indicator. And again, I allow myself to discuss about that because years ago I did this mistake by myself. For me back then indicators were the world. As I grow as a trader, I understand nothing can beat the price, okay? And the truth for me at least is the combination. The combination of these 2 should be the ultimate usage. And what do I mean by the combination? Use the indicators, but remember Indicator's purpose is what? It's to indicate. Would you agree with me that indicators do nothing more than an indication? That's why they are called indicator, right? They indicate. The thing is that indicator without a reaction of a price means nothing. It's a wrong indication. It's like watching a Canadian weather, for example, prediction, not just a week ago, a day— sorry, not a week ahead, a day ahead. Okay, there are so many times they adjust the weather, and maybe even like things like they say there will be raining in specific, at specific time, and then no rain, or the vice versa, no rain, sunny all day. And then you look like today and And it's raining and it's gray. What can you do, right? So indications are good, but follow the official facts. And that's the first thing. Now, as you can see on the charts, okay, this is my one of my templates I work with. It has some indicators, but these indicators' purpose, it's to give me like the focus, the visual focus on the levels I am going to trade and on the set. Setups I would be looking for. Okay, I am not making my decisions because of the indicator. I use them to verify what I anticipate to see on the chart because of reaching a specific level. The problem is that most traders, especially beginners, they just put everything on the chart: MACD, RSI, stochastic, CCI, Bollinger Bands. Support resistance, pivots, Fibonacci, you name it. Not that it's wrong, but it's like trying to ask a person who sells you fruits and vegetables, okay, why goat milk is better than cow milk or vice versa. That's not his field. So why would you put together 2 indicators that have nothing in common? So that's the, the first problem, the first mistake traders do— too many indicators. And the second mistake they do in the same field, it's putting indicators that have nothing to do in common together. If one indicator is supposed to give you a trend and the other indicator just give you levels, And the other indicators is for ranging market, or the other indicators is for reversals, then it's solid, right? If one indicator shows you momentum and other indicators should— is way lagging behind, then where is the logic behind it? So the first thing is, again, as always, Acknowledge the problem, understand the mistake, and be ready and accept that, willing to find a solution to that. Let's talk about the solution. As always, once you put the title on the mistake and on the problem, you can find the solutions. My purpose in this video is to give you my solutions. You can accept with them, you can disagree with me. Completely accepted and much respected. Of course, everybody has his own view. My purpose of this video is to hopefully to help those who feel like me in that case and are looking for a solution. If you don't need solution, then of course I can help with nothing here. So my solution is, first of all, understand your indicators, learn your indicators, understand what they do, what's their purpose. Okay, the problem is that there is so much education online, and let's admit most of it completely useful— useless, sorry. Why do I say that? Because most of the Instagram guys, um, or the YouTube guys— and it might sound funny because I myself do YouTube videos, right? But most of them are just making it for views or for likes or for pictures. There's nothing wrong with that. The problem is that, um, wrong education is coming from wrong hands or wrong mouths. And it's like, and it's every— in every field, right? It could be in, um, physics, right? In working out. If you listen just to some kid that is working out 2 years in a gym showing you how it's proper to do squats or whatsoever. Well, make your math, make your, make your conclusions. Same about trading. Now, unfortunately, is why I say unfortunately, because a newcomer to the trading world would not be able to separate what's good and what's bad. Everything looks good when you don't know what you're talking about. If I go to study Spanish Oh, everybody who says hola or por favor sounds to me like a genius, right? But would I really learn from someone just who knows to say a word or how to pronounce it or how to make a sentence? No, right? So do your homework on your education. Um, so know your indicators. Learn what's their purpose. If it's MACD, learn what is the MACD, what it's doing, how it helps you, why it's lagging, why it's predicting, what it does, and so on. If it's RSI, etc., etc. But don't just put the indicators on the chart expecting that they will do all— they will solve all the world's problems for you. That would be ridiculous. Um, every indicator has its purpose, and when you combine them, they should have or something in common to point you in the right direction, or contradicting each other, and then in your trading decision you follow one for direction or, or anything, and the other one to make sure it doesn't contradict you. So you are free to go, okay? But if you just put not related to each other indicators, then don't expect magical things to happen to you, okay? So learn your indicators, understand your indicators, Practice your indicators. Don't just take someone's words, not even my word, without practicing. It's worth nothing because what works for me or for someone else might be completely useless to you. Practice the indicator, test the indicator, and find the combination of indicators. And mainly remember, indicator's purpose is to indicate. Unless the price reacts to a specific scenario you are following and analyzing, indicators have no value. It's very— I, as a person who uses indicators, I know it's weird to hear that from me, but it's truth. And I allow myself to say that to you and to forward this message forward to pass this message forward to you and other viewers because I've been there and I did all these mistakes including this one. Okay, and that's pretty much it for this video. Thanks for watching. I hope you find it helpful. If you have other solutions, uh, for other traders, please share your view and not just think like price action is the king. Give a solution, not just title, and please share it in the comments. And hopefully these solutions would be helpful for other traders. I invite you to join us in Traders Academy Club. Enjoy our real-time trading education, real-time trading ideas. As you can see here, comes with video. And in our real-time updates and mainly real-time education explaining All the techniques that are used, why they are used the way they are used, and that's it. I hope to see you with us. Thank you very much for watching. Stay safe, be well, and I'll see you soon with other videos in the series. Bye for now.
