Using Indicators to Trade Systematically
In This Chapter
Moving beyond emotion with indicators
Optimizing and backtesting indicators
Indicators are a shorthand way to identify and measure market sentiment. They give you a platform for making rational trading decisions, bypassing greed, fear, and the other emotions that accompany trading.
In this chapter, I discuss using indicators to help you trade systematically. Technical traders believe that systematic trading has a sporting chance of making significant profits. But indicators don’t always work, and I explain why in this chapter. To overcome the unreliability of indicators, a money management plan is necessary, which I cover in Chapter 5.