Beginners are always looking for a magic silver bullet - a simple indicator that will make money. If they are lucky enough to make money for a while, they feel as if they have found the glorious path to wealth. When the magic does not work, amateur investors will give back all their profits, and then they will look for another magic tool. In fact, the market is so complex that it is difficult to analyze it with one indicator.
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Different indicators give contradictory signals in the same market. Trend-following indicators rise with the rise of stock prices and give a buy signal, while oscillators will appear overbought and give a sell signal. Trend-following indicators go down in the trend of falling currency prices and give a sell signal, while oscillators appear oversold and give a buy signal.
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Trend-following indicators can make money when the market is trending, but will cause double losses when the market is range-bound. Oscillators can make money in the range, but will give premature and dangerous signals when the market starts to trend. Traders often say "learn to make friends with the trend" and "let your profits run." They sometimes say "buy low, sell high". But why sell when the trend is rising? And how high is considered high?