How to make money if creating a new technical indicator ?

[Streetwise]

The math that's directly applicable to markets is boolean algebra. Without that as a basic structure of logic in one's system, it's impossible to build anything of consistency.

Come on man, even high school maths applied to TA would improve it by leaps !

 

[Streetwise]

Nothing can predict the market true INCLUDING PA analysis BUT indicators do help in analyzing the market by organizing market information into more concise manner.

Many people who use indicators are using it like it's a crystal ball that can predict the next market movement and that is why they get so disappointed that the indicators so called "fail". Market will move however it likes and it doesn't care what the indicator on that chart says. Just because the RSI has hit a supposedly overbought level of above 70 doesn't mean that the price will necessarily reverse even if it has reversed at that level 10 million times before still doesn't mean that this time RSI has hit 70 that it's going to reverse. Past performance is not indicative of the future performance; that's the disclaimer that's stated on every single mutual fund and investment websites and it applies rightfully to technical analysis indicators as well.

Every single action, buy, sell or hold in the investment market, regardless which one even if it's GIC is a gamble because there is always a chance that the investment outcome that you are expecting does not happen and there is NOTHING, no gurus, no charts, no PA, no ticker tape, no CNBC analyst, no indicator, no investment newsletter can ever change that.

Not particularly relevant to to what I said but sounds like you are a real TA (as it stands) fan.

 

[Streetwise]

%%
Good points Streetwise; i hit the like button , so 77 was a small sample
By the way,StreeWise ''any line'' includes a moving average trendline, so it's [ma]subjective.

Market Makers Edge[=Joshua Lukeman] said dont draw your own trend lines=trader bias ,amen.
Keltner bands, any bands,BB, can be wrong 7 months in a row;
but you know its a good trend, in 20 20 hindsight, when its 7 0r 8 months WRONG,in a row .LOL-LOL Welles Wilder likes his ADX much more than RSI; prefer PSAR more than any of his, but dont use it that much....................................................................................

Never mentioned an MA, was clearly referring to trend lines.

MAs are math legit but very simple, almost too primitive to be any use. There are far better more objective ways of producing trendlines.

 

[speedo]

%% LOL
I dont want to bad mouth him to much , he gave me a free trading book=partial disclosure. His daughter did real well in trading contest. I put on a W% today on a new charting service-it looked like agoofy trainwreck/inverse trainwreck==============================================================================.I hate new charts when they goof like that; its not the W%-- its the new charts W% doesnt work to well in good trends LOL

I've got nothing against Larry and yes Michelle has done quite well in Hollywood.

 

[johnnyrock]

When you say a signal service , this would be like some guy that sells trading signals ? Cheers.

Yes.

 

[wrbtrader]

Another thread about some indicator is better than those other indicators

 

[birzos]

So guys, how did someone like Welles Wilder make money by creating RSI, I do not mean using it to trade but profiting from it by selling it or letting others use it for a royalty ?

How does this work ?

Simple, it works on a exponential curve, if enough people see value and start using it you might be able to launch a consultancy via it, but normally someone else will reap the rewards. It is very rare an inventor makes money marketing their product, it is quoted Wilder spent 13years researching the markets, up to a decade would be a good measure for a material profit assuming you don't have endless marketing budgets.

 

[Streetwise]

Another thread about some indicator is better than those other indicators

Give me an example of which particular popular indicator I said is better than another. I am merely stating that one can use anything but that it should be OBJECTIVELY produced. What part don't you get ?

 

[JSOP]

Not particularly relevant to to what I said but sounds like you are a real TA (as it stands) fan.

They are useful. It's just unfortunate that they get way too much of their fair share of the blame for losing in the market.

 

[Streetwise]

Useful is subjective and thus not very useful , lol . But seriously, if the calculation is objective then it might be of use, bearing in mind there's a whole world of maths / science concepts which have barely been touched for their usefulness in TA.