Alex
We have to understand how an indicator behaves under different scenarios to
derive optimal benefit from it. Take the lowly much abused stochastic which
most folk seem to dismiss outright.
1. In a ranging/non-trending market it will provide you with decent OB/OS
points.
2. In a trending market you will get good entry signals to get an entry into
a trending move on minor connections.
As Gerard Carey wrote on this list a few days back, most indicators provide
similar signals. You take those signals and let price movement validate them
and THEN act. Price has a mind of it's own and I doubt if there are any
indicators that can predict price action.
Since trading systems/methods is not the subject of this group, this subject
is best moved to the AB-TS group IF it is of interest to the rest of the
user group.
R
On 3/25/07, dralexchambers <[EMAIL PROTECTED]> wrote:
Just a thought from my recent study, but here-in lies my problem with
indicators.
I started out thinking this indicator with that would be a magic
bullet. When I found out that long-term things didn't work out, I
tried using different settings - and then combining different
indicators, etc...
I soon came to the conclusion that ANY indicator will make you a
profit during a trend, but that same indicator will lose you most if
not all of that money during a ranging whipsaw market. I have not
found an indicator/combination that:
1. Keeps you out of a whipsaw market
2. Alerts you to a trend - but not too late whereby you miss most of
the move.
Maybe I have not found the right combination, and I don't think it
exists.
However - comments for discussion are welcome.
AC
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