Each 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 the simpler methods. The more straightforward the indicator is, the more fans it has, in my opinion.
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.
My main reason for posting this poll is to warn traders (mostly the new ones) to stay away from inefficient trading tools. Getting an industry consensus in a form of this blog’s audience opinion is a tough task, but I hope it will help other Forex traders prosper and avoid subpar trading methods.
I am 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.
My personal list of three worst FX tools includes: tick volume (because it is so
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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 reply using the commentary form below.
