Best indicators to guess tops/bottoms; determine overbought/oversold areas

Quote from Lamont_C:

You need only two, and they aren't "indicators" as the term is generally used. The first is the difference between volume of advancers and volume of decliners. The second is new highs and new lows. These are what professionals look at but novices rarely (as in practically never) look at. And they can't be manipulated and don't require settings of any kind. They just are. And if you had followed them regularly, you would have been in a position to take advantage of the downdraft on the 3rd and the bounce last Friday.

If you're interested, just do a search using "avdvd".

Lamont
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Mmm interesting.

Does AVDVD do the same job as Accumulation Distribution indicator? Is there a difference?

What is the experience with AVDVD?
 
Quote from Lamont_C:

You need only two, and they aren't "indicators" as the term is generally used. The first is the difference between volume of advancers and volume of decliners. The second is new highs and new lows. These are what professionals look at but novices rarely (as in practically never) look at. And they can't be manipulated and don't require settings of any kind. They just are. And if you had followed them regularly, you would have been in a position to take advantage of the downdraft on the 3rd and the bounce last Friday.

If you're interested, just do a search using "avdvd".

Lamont
More...

good solid recommendation, apart from the statement "You need only two"
 
Quote from Champion:

Mmm interesting.

Does AVDVD do the same job as Accumulation Distribution indicator? Is there a difference?

What is the experience with AVDVD?
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It's not an indicator. It's simply data, like price. Volume of advancers. Volume of decliners.

As for experience, I can recall only two false signals since 1990 (Nasdaq data before then is sketchy).
 
Quote from Pekelo:

Well, you might just have to do your own testing, what is probably the best. So try a software where you can have all those indicators and see how they react to the stock's or market's movements. What works for one, might be unsuitable for other.

If you don't have a software, use the free website bigcharts.com, you can test most indicators there.

Personally I use BB with Williams on a 5 mins chart. In a non-trending enviroment they are excellent for tops/bottoms...
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Yes, I think all sorts of overbought/oversold indicators are only applicable to trading/sideways markets. They keep failing in trending markets.

What software do you use?
 
Quote from Lamont_C:

You need only two, and they aren't "indicators" as the term is generally used. The first is the difference between volume of advancers and volume of decliners. The second is new highs and new lows. These are what professionals look at but novices rarely (as in practically never) look at. And they can't be manipulated and don't require settings of any kind. They just are. And if you had followed them regularly, you would have been in a position to take advantage of the downdraft on the 3rd and the bounce last Friday.

If you're interested, just do a search using "avdvd".

Lamont
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A google search of "avdvd" produces many irrelevant results!

Is there another name for this?
 
Investors generally go broke trying to pick tops and bottoms. A lot of 'bottom pickers' lost their shirts in 2001.

Be patient and wait until the reversal is Obvious and then enter.
 
Quote from WmWaster:

Yes, I think all sorts of overbought/oversold indicators are only applicable to trading/sideways markets. They keep failing in trending markets.
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This is as it should be. Just as trend indicators cannot predict tops and bottoms, counter-trend indicators (aka overbought / oversold indicators) cannot handle trends adequately.

Most successful TA traders are trend followers, not counter-trenders. So you might want to re-evaluate your approach to TA. Or, rather than asking for someone here to just hand you a boffo OB/OS indicator, you can design your own and apply it. This involves the scary notions of starting from first principles, and doing research to see what's come before (and failed), and being original in your design of a new indicator. Not an easy task, but potentially rewarding in ways you haven't thought of yet. Good luck.
 
Quote from kut2k2:

Most successful TA traders are trend followers, not counter-trenders.
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Really curious where you got your stats from for this comment. I was not aware that this was the case.
 
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