Every trader has his or her own best trading tool — be it a simple moving average or a complex system that combines volume, market sentiment indicators, and Elliott Wave count done on Fibonacci numbers. It seems that Forex traders favor simpler methods. The more straightforward the indicator is, the more fans it usually has.
But when it comes to the indicators that people dislike, things are getting a bit mixed up. On the one hand, less sophisticated traders will tend to hate more intricate tools of analysis. On the other hand, experienced traders would have already had enough of the moving averages, RSI, or the likes. At the same time, everyone who has had some success trading currencies and applying various indicators has a tip or two regarding which stuff is really useless or outright dangerous for your account.
The main reason for publishing this guide is to warn traders (mostly the new ones) to stay away from inefficient trading tools. Getting a timely warning about tools that are utterly counterproductive will help beginning Forex traders prosper and avoid subpar trading methods.
We are using the general word tool in this poll because it includes not just methods of analysis, but also methods for trading decision making and execution. It can be an indicator, a system, a rule, or anything else that has to do with actual buying and selling of currencies.
Our own list of the three worst FX tools includes: tick volume (because it is so
And the worst tools that are mentioned by our readers most often are:
- ZigZag
- Stochastic oscillator
- Relative Strength Index
- Bollinger Bands
- Pivot points
- Trend lines
- Elliott Waves
- Price action
- Ichimoku Kinko Hyo
- News trading
- Candlestick patterns
- Chart Patterns (Harmonic/Gartley)
- Fibonacci
- Renko charts
- Parabolic SAR
- Divergence
- Williams' % Range
- MACD
- Tick volume
- Average Directional Index
- Wolfe Waves
If you want to share your thoughts on which indicators or other analytical tools you consider to be the worst ones in Forex trading, please feel free to do so on our Forum.
