While I agree with you that support/resistance is a very important part of trading, everybody's trading style is different.
You can trade reversals at S/R or you can trade breakouts of S/R. Indicators help filter out the losing trades. There are basically 3 kinds of markets, fast trending, moderate trending and trading range. Adaptive indicators can adjust to market conditions, fixed period indicators cannot. What that means is adaptive indicators can do a better job of filtering out losing trades. Bill --- In [email protected], "scourt2000" <[EMAIL PROTECTED]> wrote: > > > I offer up this kind of information to help give someone what they > want. But, in this instance, I'd like mention what's far better than > any of this CCI/RSI/MACD/Stochastic/blah-blah "stuff", adaptive or > otherwise. > > This is what works since the dawn of trading (I'm speaking mainly to > you e-mini futures traders out there who are getting too caught up in > indicators and trying to massage them to infinity in an effort to > reduce your loss percentage): > > Go to a price chart, NOT an indicator. Find support and resistance. > Buy the stronger supports. Sell the stronger resistances. Scalp the > weaker ones. Trade heavier with the trend. Manage the trades. > > Your research is your confirmation. The better your research, the > better your real-time performance will be. If you need "momentum > confirmation" to get into a trade, then please never tell me that > you're getting in 1-2 bars "ahead of the world" because I'm 1-2 bars > ahead of YOUR world and what I'm doing is leading price, not > following it from an indicator derived from price. > > There's no follow-up to this on my part. I'm not engaging anyone in > an argument over this. I have seen literally 100's fall by the > wayside in the daytrading e-mini world, playing around with > indicators. The ones I consistently see still in the game and > trading well are the ones who pay attention primarily to support and > resistance from a price chart, not from some indicator. > > There are exceptions to any general rule. But your likelihood of > winding up in the blown-out account list is much higher by playing > with indicators instead of simple, common support and resistance > through multiple timeframes. > > --- In [email protected], "scourt2000" <stevehite@> wrote: > > > > > > Bill, > > > > Sounds like you're interested in John Ehlers' work on adaptive > > indicators that he explained in Chapter 22 of his book, "Rocket > > Science for Traders". He took some common momentum indicators > > (including the CCI) and coded them up to be adaptive in > Tradestation > > Easy Language. > > > > Also, you can find a couple of articles about this at > tuckerreport.com > > > > > > --- In [email protected], "bilbo0211" <bilbod@> wrote: > > > > > > --- In [email protected], "Howard B" <howardbandy@> wrote: > > > > For this statement: > > > > somevar = CCI(parm); > > > > "somevar" will be an array with one element for every bar of the > > > data array, > > > > the value of that element the result of applying the CCI > function > > to the > > > > "average" of that bar ((H+L+C)/3), for the lookback length > > of "parm". > > > > > > > > What problem are you trying to solve? > > > > > > > > > > I want parm to be an array. > > > > > > What I am doing is trying to 'tune' the CCI to the dominant cycle > in > > > the market. > > > > > > Let me give you a simplistic example using moving averages. > > > > > > If you are trading a trending market (longer period dominant > cycle), > > > you want a longer period moving average to filter out the small > > (high > > > frequency) corrections that occur. > > > > > > In a trading range market (shorter period dominant cycle), you > want > > a > > > shorter period moving average that can react more quickly to the > > > shorter term changes in direction. > > > > > > I started by using the fft to estimate the dominant cycle but I > had > > a > > > lot of trouble coding something useful so I switched to Ehler's > > > estimate (using Laguerre filter, it's in the afl library). > > > > > > As crude as that estimate is, it improves the performance of the > > > indicators I tried it on. If I could get a more accurate measure > of > > > the dominant cycle, I am confident it would improve performance > > even more. > > > > > > That's why I want the period of the CCI to vary. > > > > > > I also don't see any point to include the C of a bar for intraday > > > charts. I use CCIa((H+L)/2,period). > > > > > > Bill > > > > > >
