I tested 5,000 indicators so you don't have to. The conclusion? I use Fibonacci. That's it.
Let me explain.
The Indicator Trap
Every new trader goes through the same phase. You discover that MT4 has hundreds of indicators. You start layering them — RSI plus MACD plus Bollinger Bands plus Stochastic plus Ichimoku. Your chart looks like a Christmas tree. And you're still losing money.
I spent two years in that trap. I coded custom indicators, tested every oscillator on every timeframe, backtested combinations until my eyes bled. What I found was uncomfortable: more indicators didn't mean better decisions. They meant more noise.
What I Actually Use
Here's my setup. One chart. Clean. Nothing but price and Fibonacci.
- Structure first. Before any indicator, I look at market structure. Higher highs, higher lows — that's an uptrend. Lower highs, lower lows — that's a downtrend. Everything else is context.
- Fibonacci retracements. After a significant move, I plot Fib from the swing low to swing high (and vice versa). The 38.2%, 50%, and 61.8% levels are my entry zones. I don't enter at the level — I wait for price to react at the level.
- Fibonacci extensions. For targets. The 127.2% and 161.8% extensions give me profit zones. I take partials there and let the rest run.
- Multi-timeframe structure. I check Daily for the trend, 4H for the setup, 1H for the entry. If all three align, the trade has a higher probability of working. If they don't align, I wait.
The Physical Notebook
Every trade goes in a physical notebook. Date, pair, entry, stop, target, reason, outcome. I've filled 14 notebooks in 10 years. There's no shortcut for this. When you hand-write your analysis, you process it differently. You remember your mistakes. You catch patterns in your behavior that a spreadsheet won't show you.
The 3 Rules I Never Break
- 2% risk per trade. Not 2.5%. Not 3%. Two percent. When your position size is fixed, your decisions are rational. When it's flexible, your emotions take over.
- Three consecutive losses and I stop. Not four. Three. I close the charts, go for a walk, come back the next day. The market will still be there. Your account might not be if you revenge trade.
- I don't predict. I prepare. I don't ask "where is gold going?" I ask "if gold goes here, what will I do? If it goes there, what will I do?" Preparation removes emotion from execution.
A Real Example
Last week, gold sold off from $4,137 to $3,983 — a 154-dollar move. I plotted my Fib from the March low to the May high. The 61.8% retracement sat at $3,985. Price hit it, bounced, and within 24 hours we were back at $4,035. That's not prediction. That's preparation. I knew where I would buy before price got there.
The Bottom Line
You don't need a hundred indicators. You need a clean chart, a reliable tool, and the discipline to follow your rules. The market tells you everything if you stop covering your screen with noise.