This questions gets asked in one fashion or another on trading forum sites quite regularly.
There is no best indicator, though. Never let anyone suggest otherwise.
Each indicator you come across will have been designed for a particular purpose. Some are used to identify trends. Others are used to determine overbought or oversold conditions. Others are for momentum. And so on.
Determining what indicator to use requires knowing how you’ll be approaching the market. When you have that in mind you can ask a slightly different question:
“What indicator or indicators are good for … ”
It’s also worth noting that there are a great many traders who couldn’t be bothered with indicators at all. They sometimes call themselves “dark sidersâ€.
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.
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