The 3Dimensional Trading Breakthrough
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<strong>The</strong> 3 Dimensional <strong>Trading</strong> <strong>Breakthrough</strong><br />
Types of Indicators<br />
<strong>The</strong>re are two types of indicators that most traders usually consider in their dayto-day<br />
trading activity: “external” and “internal” indicators. First, let’s talk about<br />
external indicators.<br />
External indicators are those indicators that provide “direction” after it already<br />
happens. Simply speaking, it lags after price discovery. What good is that? If<br />
you jump on board the market, it is a higher risk trade because the market may<br />
be already due for a correction. This in turn could stop those traders who have<br />
placed “tight” stops. External indicators are the common indicators such as:<br />
RSI, stochastics, and MACD. <strong>The</strong> following is an example of an external indicator<br />
providing direction after the market has already moved.<br />
External indicators (or “lagging indicators”) fail to provide trading signals even<br />
when the coffee market is in the midst of an all out trend change. <strong>The</strong>re MUST<br />
be something better...!<br />
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