On indicators vs. price action in FX, especially in ranging markets
It's always struck me how much weight some traders put on indicators in FX, especially when markets are ranging. I'm looking at $USDMXN, for example, currently at 17.24353. It's been consolidating for a bit, bouncing between 17.21 and 17.25 today. In environments like this, trying to derive actionable signals from MACD crossovers or RSI divergences feels like chasing ghosts. Price action, pure and simple, charting the highs and lows, understanding rejection points and support/resistance zones, seems far more effective for identifying potential turns or breakouts.
I get the appeal of a clear signal, but lagging indicators often just confirm what your eyes already saw in the candles. Even with $CADUSD, sitting at 0.71383, which has shown a bit more movement, the real story for me is how it interacts with key structural levels, not what some oscillating line on a sub-chart is telling me. Am I missing something fundamental here, or do others find the indicator-heavy approach less useful in today's FX landscape? Push back if you think I'm off base.
Completely agree. In a tight range like that, most indicators just whipsaw and give false signals. Pure price action, maybe a quick scalp off the bounds, is often the only play that makes sense. Do you find yourself adjusting your timeframes in these situations?