Tips for dealing with indicators

Here you will get to know the most important indicators, some of them - such as the GD and the RSI - are very well known, others - such as the TSF or the Parabolic SAR - are only used by a few analysts so far.

Almost every indicator has different setting options, such as the calculation period or smoothing.

We would like to give you the following tips on dealing with indicators. If you have already had your own experiences, we would be pleased to receive any new information, which we will then pass on to other technical analysts.

• Test each indicator in different stock market phases and with different securities before you use it in your investment decisions. You can easily simulate different stock market phases in Infront Portfolio Manager by changing the display period in the chart display accordingly.
• Experiment with different settings for the individual indicators - even settings that seem unusual at first glance can lead to surprisingly good results. Make a note of the individual results and keep them in a safe place. An indicator can deliver good results in combination with another indicator.
• If you have made investment decisions based on one or more indicators, print out the chart in the exact setting that led to your decision. It is best to attach the printout directly to the order confirmation from your bank - this way you can quickly and easily check later whether the decision was a good one or whether it led to losses.
• Never work with too many indicators at the same time! Three or a maximum of four indicators per chart are sufficient. If even more indicators are used, the chart quickly becomes confusing.
• Put together different layouts for long-term, medium-term and short-term analyses, which you can then use again and again. This ensures that you always use the same indicators and settings.
• Before you put money into the buy and sell signals generated by your indicators, we recommend that you first run a portfolio with test purchases to test the success of your strategy.
• In the Infront Portfolio Manager you can have your indicators automatically tested with different settings, so you can see within a few seconds which setting promises the greatest success.
• Try to build complete strategies from the individual indicators.