Quote from ptolemy:
Ironfist. I have read about moving averages that eliminate lag but when you do so you trade lag for speculation and in my opinion you are no better for it.
Indicators like the VPCI (Volume Price Confirmation Indicator) Are a better tool. It is an oscillator and shows when Volume is confirming a price move or not. In a down trend if volume is low or shallow then the indicator will be negative and when the indicator is possitive then volume is confirming the trend.
How best to use this indicator?
If you have charting software then you can scan a large list of stocks for a negative reading on the VPCI. This will give you charts that the volume is not confirming the current price action. You can then use the next step in reasoning that if price is near a support or resistance level, a Fib level or pivot point that a price reversal is imminent.
Here is where you can learn more about this indicator
http://www.tradecision.com/support/tasc_tips/VPCI.htm
By the way how would anyone know if Swordsman is profitable or not? He sounds like he knows what he is talking about more than most here.
MACD is garbage.
Thank you for the enlightenment.
I have been looking for an oscillator like this but have continously missed it.
It solves a bunch of headaches for me and allows me to start looking at much shorter trade time frames. Thanks!