Thoughts on Indicator Overreliance vs. Pure Price Action
It feels like many new traders get bogged down in a stack of indicators – moving averages, RSI, MACD, Stochastics – trying to confirm every little wiggle. While I appreciate the value some can add, especially for confluence, I've personally found more clarity and better decision-making by stripping things back to pure price action and support/resistance levels. Looking at $NFLX down nearly 3% today, hitting 73.37, it's easier to gauge where buyers might step in based on previous structure rather than waiting for multiple lines to cross. Same with $ABC, hovering around 179.98; I'm watching its intra-day range (179.24–180.93) for exhaustion signals, not necessarily waiting for a lagging indicator. Am I completely missing something here, or do others also feel indicators often create more noise than signal, especially for shorter-term trades?
It's a common trap. Overlapping several lagging indicators often just gives you confirmation bias, not genuine insight. Price action certainly cuts through a lot of that noise, but it's not a silver bullet either.