📊 Column One: Technical Analysis Through Elder's Eyes
In a world filled with complex indicators and charts, Elder stated:
> "Indicators are not the goal... they are just tools to help you understand market behavior."
Elder didn't like complexity and focused on simple yet powerful indicators, the most important of which are:
---
1️⃣ MACD Indicator – the heartbeat of market movements
Elder relied on MACD as a primary indicator because:
It shows momentum.
It helps you know when the market is entering a buying or selling wave.
Not only does he use it for direction, but also for reversal signals during turnarounds.
He believed that MACD helps the trader see the big picture…
Not just focus on each candle, but on the entire wave.
---
2️⃣ Moving Averages – the natural filter of the market
Elder didn't like to enter a random market.
He used the Simple Moving Average (SMA) and the Exponential Moving Average (EMA) as a filter:
If the price is above the average → the trend is upward.
If the price is below it → the trend is downward.
It's not necessary to buy or sell based on this, but you must understand the direction of the current before you dive into the sea.
---
3️⃣ Trading Volumes – signals of truth or deception
> "The market that lies… its voice is low."
This means if there's a rise without volume → beware.
And if there's a drop with an explosion in volume → the market is screaming in fear.
---
👁️ The secret is not in the indicator… the secret is in how to use it
If you can read the market with psychological eyes, you can understand the signal of each indicator as if it were the pulse of a living body.