#582: How to Avoid Useless Forex Indicators

03/22/25 • 5 min

How to Avoid Useless Forex Indicators

Podcast:

Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now Click Here to Watch Prop Firm Masterclass

#582: How to Avoid Useless Forex Indicators

In this video:
00:24 – What trading Indicators should you use?
01:31 – Most Indicators don’t work.
01:52 – You must look at the price.
02:23 – Horizontal levels and Candles are good indicators.
04:50 – Blueberry Markets as a Forex Broker offering a 50% credit bonus.
05:19 – Book a Call and speak with us.
05:35 – 17 minutes Masterclass.

What is the best trading indicator that you can use on your charts as a trader? Let’s talk about that more right now.

Hi there, Traders! It’s Andrew Mitchem here, the owner of The Forex Trading Coach with video and podcast number 582.

What trading Indicators should you use?

Today I want to talk and discuss indicators. As a trader, if you open any charting package, whether it’s MetaTrader like I’ve got the Me here or Trading view, whatever it is that you use, you will find that trading package, that charting package absolutely full of various indicators.

They can be dots and lines and arrows and triangles and all sorts of different things on your charts. And I’ll tell you what, they look amazing, don’t they? They look so good, especially if you’re a new trader and everybody falls for it. I know I did this like 20 years ago. I had this moving average crossing over that one and a swing low here and a MACD there, and I looked absolutely beautiful, and I knew that I was going to become a multi-millionaire in no time at all, because as soon as this line crossed that line there, and this dot showed there and below it and all those things, it was going to be a brilliant, simple, easy trade. Said reality is, none of that is true. That is the truth.

Most Indicators don’t work.

The reality is that almost all indicators that you see on a standard charting package, they lag time, they tell you what’s already happened, they can’t help you, most of them with what’s likely to happen or any sensible trading decisions. Sure, there are some that can be used as a bit of an age once you know what you’re doing.

You must look at the price.

But in general, most people get completely caught up because they don’t look at the obvious thing. And that’s the right hand side of the chart, and they do not look at the price. If you don’t look at the price and you rely on dots and arrows and lines, etc., you’re going to get spaghetti on your charts and you’re not seeing what’s really happening. You’re not seeing the true psychology behind what’s happening. What’s really happening are the buyers are the sellers.

Has it bounced at that level before all those type of things? You’re completely ignoring because you’re failing to look at the price?

Horizontal levels and Candles are good indicators.

I much prefer a number of indicators. Horizontal levels are absolutely fantastic. Why? Because they never move. A horizontal level that you see is the same as what I see at the same time. You know, again, the price, whether it be the daily pivot point, support and resistance level, swing high swing lows, those things never change.

And so by having those on your chart, it’s giving you something that’s an absolute that’s actually happened. If the price pulls back to a round number and that happens to be a previous swing low and it bounces at that level, well, quite likely, then you’re going to get that support level holding and the price is likely to move up.

So then I add another, indicator of a sort and that’s candle, patterns and understanding candles themselves. What they’re telling me are they exhaustion candles. Are they indecision candles. Are they confirmation of a change in direction? Are they confirmation of a continuation pattern or a reversal pattern? All these type of things are really important for you to understand, as a trader.

And you can only really make that decision about a candle upon the close of a candle, because then it becomes again, like a horizontal line. It set is an absolute and it’s never going to change. There are a few extra little indicators that I do like, to help me give a likely, cha...

How to Avoid Useless Forex Indicators

Podcast:

#582: How to Avoid Useless Forex Indicators

What is the best trading indicator that you can use on your charts as a trader? Let’s talk about that more right now.

Hi there, Traders! It’s Andrew Mitchem here, the owner of The Forex Trading Coach with video and podcast number 582.

What trading Indicators should you use?

Most Indicators don’t work.

You must look at the price.

Has it bounced at that level before all those type of things? You’re completely ignoring because you’re failing to look at the price?

Horizontal levels and Candles are good indicators.

Previous Episode

#581: How to Choose the Best Forex Pairs for Trading

How to Choose the Best Forex Pairs for Trading

Podcast:

#581: How to Choose the Best Forex Pairs for Trading

In this video:
00:22 – Forex pairs – what to choose?
01:37 – The best pair to trade is ........
02:00 – Assessing Strength and Weakness.
03:13 – Fine tuning to pick the best setup available.
04:25 – 17 minutes Masterclass.
04:33 – Blueberry Markets as a Forex Broker offering a 50% credit bonus.
05:05 – Book a Call and speak with us.

As a forex trader, what are the best forex pairs that you can look at trading? Let’s talk about that a more. Right now.

Hey traders, Andrew here at The Forex Trading Coach with video and podcast number 581.

Forex pairs – what to choose?

What to talk about forex pairs as a trader you have a lot of pairs available and a lot of people, especially when they start. I get very confused with the different currency pairs. You standard main pairs you get you exotics, you get your minors, and more and more pairs now are available to us as traders.

So really the question is what is the best pair to trade? Well, a lot of people think you need to trade just the euro US dollar or just the US yen because their spreads are tight. And in the case of the EUR/USD, it tends to have the most movement or not some movement, but the most volume traded on it, per day in general.

And then other people look at pairs like the GBP/JPY because it moves a lot and they think they need to trade that. And then people look at pairs like the EUR/CHF, which doesn’t move a lot, and they think they can’t trade it. So that becomes a lot of confusion out there. Do you need, like the most liquid pair, the tighter spread. Do you need one that moves a lot? Do you need one that doesn’t move at all?

The best pair to trade is ........

And so my answer is it depends. And I know I say that to a few things because it’s true. I don’t just trade the NZD/USD or against the JPY because I live in New Zealand. You shouldn’t do that either.

You shouldn’t have an emotional tie to a currency pair. What you should do is look through all the currency pairs. And the reason I say that there’s a few reasons.

Assessing Strength and Weakness.

Number one, you can assess strength and weakness very well. If you do that. As an example, rather than just looking at the EUR/USD, why don’t you look at also the EUR/JPY, the EUR/GBP, the EUR/AUD, EUR/NZD, EUR/CAD and make a full assessment.

So if for example you can do that and you see let’s say all of those pairs were moving up, that’s going to give you a fairly good indication that the Euro is very, very strong. But if you didn’t do that and you looked at just the EUR/USD and is moving up, you don’t know whether the strength in the Euro or whether that movement of the EUR/USD heading up is, is just because the US is extremely weak right now.

So you might be taking a by trade on the EUR/USD thinking the strength in the Euro, whereas it may just be the US weakness that’s pushing it up. And the Euro against other pairs may actually be dropping. So you’re not doing yourself any favors there. So to assess multiple currency pairs is going to be your best option.

Fine tuning to pick the best setup available.

The other thing that gives you is let’s say you see really good buy trades on the EUR/USD, the EUR/CAD, the EUR/AUD, the EUR/NZD, the EUR/CHF. Let’s say they’re all showing some fairly good setups at the same time. And by the way, I only trade on the close of a candle. Let’s say you see that what you really then should do is fine tune those setups and maybe pick 1 or 2 of the very best ones setups that give you a high probability chance of a success for trade setups that have round numbers in their favor.

On a buy trade that doesn’t need to break a previous swing high, things like that. So you can be really, really critical of setups and fine tuned to make sure that when you take your trades and there’s multiple trade showing at the same time, you can be selective and choose the highest quality trades. So that’s why I say you should be looking at multiple currency pairs.

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Next Episode

#583: Why Most Traders Fail Prop Firm Challenges and How to Succeed

Why Most Traders Fail Prop Firm Challenges and How to Succeed

Podcast:

Click Here to Register My Upcoming Webinar – “Prop Firm Mastery: How To Get – And STAY – Funded... So You Can Transform Your Income In Just 30 Minutes A Day” Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now Click Here to Watch Prop Firm Masterclass

#583: Why Most Traders Fail Prop Firm Challenges and How to Succeed

In this video:
00:26 – Advantages and disadvantages of trading on a prop firm.
01:05 – People jump in too soon and then fail.
02:02 – Prop firm challenge example.
03:44 – Large gains for a small investment.
04:25 – Use a VPS and copier software.
05:24 – A free and LIVE webinar for passing a prop firm challenge.
06:16 – 17 minutes Masterclass and book a call with us.
06:27 – Blueberry Markets as a Forex Broker.

So you want to know how to pass a prop foam challenge and to make money by making commissions via prop firm. Let’s talk about that a more right now.

Hey there, traders! Andrew Mitchem here at the Forex Trading Coach with video on podcast number 583.

Advantages and disadvantages of trading on a prop firm.

Today is about passing prop firm challenges, the pitfalls and the advantages of trading via a prop firm. Now, if you don’t know, all approximates, go and have a look online. If you do know what one is. Then you’ll know that they’re not always as easy to pass as you might think.

They look really good, and for a lot of people, they look to be a fantastic way of making some very, very good, substantial profits from trading. But with that, needing your own funds and that is the obvious advantage of them. But there are a number of things you have to be careful of.

People jump in too soon and then fail.

One of the most common issues that I see is that people jump into a prop firm way too soon. They should don’t know how to trade, and they just think they’re going to pay $500 to get $100,000 account. Pass a few demo challenges onto real money, make a fortune. The reality is that for most people, that’s not going to happen. And it comes back to, as I’ve mentioned, that they jump too soon. So for me, it’s really important that you look at a prop firm maybe as something maybe like 6 to 12 months from now.

So it’s a profitable first, get yourself profitable and have confidence in strategy and understand it on a demo account. Then a small live account and then maybe a larger live account. And at that point, with consistency and with the meeting, the rules of a prop firm. You can then go and successfully pass the challenge.

Now this printed out some, a prop firm challenge here. This happens to be from, blueberry funded. And they have one and two step processes. I actually really like the two stage process. The two step process. I’ll tell you what, because you have to prove yourself twice on a demo account before you go to live money. And what I like about it is because you have to prove yourself twice, and you will probably take a little bit longer to pass the demo, challenge or challenges.

Prop firm challenge example.

As a result of that, you get given a larger drawdown amount. And to me, probably the most, well, the biggest reason why people don’t pass prop firm challenges is because they get stopped at and they reached the drawdown criteria, and that means that they’re risking too much and they’re having too many losing trades, etc.. What I like with this idea is that you need to make a, a 10% gain, but also they allow you up to a 10% drawdown.

So there’s a lot more flexible in there. And so by going through a two stage process, having that bigger drawdown, ability, when you get on to the real account, things become a lot easier. You think about it, if you have the ability to have, let’s say, a 10% drawdown as opposed to maybe a 5 or 6% drawdown when it comes to real trading and real money.

It just gives you a lot more flexibility. So don’t just pick like the quickest solution or the cheapest solution. Pick one that’s going to suit you. And don’t be in a race to pass the demo challenge to get on to real m...