Along the lines of evaluating multiple time frames, finding the best indicators for me personally involved looking into the past to analyze which moving averages in a given time frame foreshadowed rising prices virtually every time they evidenced an upward trajectory, or were followed by falling prices just about every time they evidenced a downward slope—where the association between the two phenomena produced a statistically significant positive correlation (as close to 100% as possible). I then applied those same measures in the present to achieve successful outcomes.
Indicators - What indicator in your opinion is the best?
- Thread starter The Humble Bunch
- Start date
%%50 and 150 days simple moving average for trend following strategy.If this is an indicator for all strategies then it should be called "the holy grail."
NOT quite that simple[ for me anyway];
i never could find much use for 150 dma. IF you can, fine Maybe you like WSJ 65 dma????????????? That 65 dma is too little, too late for me. BUT even that could work on DOW, 'cause IBD founder noted DOW is easier to manipulate.
, Price/P+L can help sometimes...............................................all indicators suffer one problem...even economic indicators.
the look back period which by definition is fixed.
this is what makes all indicators very limited.
all of them are 'correct'.
but they are limited and valid only for the time period under comparison.
in trading momentum indicators compare present momentum to a past period which is fixed.
if i use my eyes to compare present to past that past is not fixed.
this makes this latter method much more powerful
the look back period which by definition is fixed.
this is what makes all indicators very limited.
all of them are 'correct'.
but they are limited and valid only for the time period under comparison.
in trading momentum indicators compare present momentum to a past period which is fixed.
if i use my eyes to compare present to past that past is not fixed.
this makes this latter method much more powerful
Do you carry out your Eod analysis each day or on three weekend? Thanks.
The analysis for each strategy gets carried out every day as it’s all fully automated and generates hundreds of trades. I wouldn’t be able to handle that manually.
Yup, one reason that trading is predominantly herding, human nature to follow the crowd.
Once a winner is identified, then more of the crowd join in.
Only problem is, arriving to the party late when half the drinks and food have gone.
Bit like driving down the road, seeing all the cars parked and walking in unannounced, make it look like you were invited and there for hours.
I once asked a pension fund manager what sort of idiot buys at a new high. "Pension funds", he said. For mature stocks this makes no sense. But they don't need to make sense-they just have more money fed in every month
CannonTrading_Ilan
Sponsor
combination of indicators/news/money management and much more....
Some of my personal opinions in videos below.....
Using overbought/oversold:
Range bars
Bollinger bands:
Price Confirmation:
Most every traditional technical indicator that I can think of is some sort of variation on the functional theme of: 1. moving average, 2. oscillator, or 3. volatility as it relates to price data or volume over time.
There are statistical studies like time series analysis that are also quite useful for modeling markets.
There are statistical studies like time series analysis that are also quite useful for modeling markets.