Stochastic "Every indicator has it’s limitations"

The purpose of indicators appears to be misunderstood by a certain class of traders. An indicator comes in help to a trader in the next ways:

If we consider the fact that a classic indicator (Stochastic, RSI, Bollinger bands, moving average, ADX etc.) is used by a big percent of the active traders, we can point to the conclusion that all of them, seeing at a certain time a certain signal (or almost the same signal) of the classic indicator they use, will be tended to act in the same way. This is the result of the so called mass psychology. So, an indicator, helps a trader by offering him a tip regarding what the majority sees and, as a result, is tended to do;

If the indicator is coupled to a profitable strategy, it’s signal(s) contribute to a much bigger certainty;

In some strategies it offers a better price or an advantageous moment for the trade opening.
P.S. Every indicator has it’s limitations.

Fibonacci Fan

Fibonacci Fans use Fibonacci ratios based on time and price to construct support and resistance trendlines

clipped from www.investopedia.com Fibonacci Fan A charting technique consisting of three diagonal lines that use Fibonacci ratios to help identify key levels of support and resistance. clipped from www.youtube.com clipped from www.investopedia.com Fibonacci fans are created by first drawing a trendline through two points (usually the high and low in a given period), and then by dividing the vertical distance between the two points by the key Fibonacci ratios of 38.2%, 50% and 61.8%. The result of these divisions each represent a point within the vertical distance. The three 'fan' lines are then created by drawing a line from the leftmost point to each of the three representing a Fibonacci ratio.

Fibonacci Part 1

If it was that easy to make money from this , go ahead and make billions.

clipped from www.youtube.com Fibonacci Part 1 If it was that easy to make money from this , go ahead and make billions. Somebody has to come up with an explanation from the trader´s point of view. One doesn´t know what the graphic looks like already. All these explanations go so far into the future of the graph