Observe the masses and do the ”opposite” as this is the way to succeed in the world of forex.
The majority of traders read the charts based on what they perceive to be logical, rather than the indications shown on the chart or graph.
Are indicators the way to progress and forecast?
Yes, indicators when used right and with patience then traders can implement their strategies with confidence to achieve success.
Observe and implement the indicators right
One weakness of indicators though is that that they must be dealt smart, and with care, in the lagging part.
Therefore, due to the above weakness, the traders should use the indicators from a different perspective, and not as intended to be used whatsoever.
The slogan of this article or rather its title, as you have already mentioned, is ”Observe the masses and succeed”, and this is the overall idea when using indicators.
Usually, indicators such as the Relative Strength Index (RSI), the Stochastic Oscillator, and the Commodity Channel Index (CCI) are mostly used for identifying the overbought and the oversold levels. But is it always like that?
Did you notice that, in most cases, the above indicators act as breakout tools rather than identifying the bullish or bearish retracement areas via oversold or overbought levels?
Moreover, the idea is to find a way of minimizing your losing trades, as well as achieving consistency in your trading approach when using indicators.