My number technical indicator after the naked price-action is MACD. There is always a reaction when one says this or that is one's favourite technical indicator. The reaction in my case will be something along the line: MACD? I can not believe that MACD is your favourite indicator? Oh! I hate MACD and so on. That is normal and fine.
The correct question to ask after one reveals its best indicator is to ask why. Why? Yes I heard you.
Well, because MACD in reality is the moving average twelve of the price action place below it with a central line moving average twenty-six called the zero line.
There are more to MACD and its formula, but I am explaining why it is my best indicator. So, MACD is a smooth version of the price-action. It is also a latent version of it therefore it is reflecting the trend and divergences.
I will not bore you with a long explanation, but that is it really. If you want to know more about why MACD is my number technical indicator after the price-action, please visit Stochastic-macd.com. You will find more useful web pages.
I do not want to fight the trend. I want to know when a bullish or bearish divergences are in place. That is all. And MACD never let me down, but it is myself that misinterpret it sometimes. In fact, it has been a long time love affair between MACD and me. I also like MACD just because it gives so many warnings that one should heed.