macd indictor lags, is there software that doesnt

Hey their Toptrader8. I did not know that that you were over here as well. Glad to have some company. So far so good. We have some smart folks here, only encountered a couple of cowboys but we will see.

Do not be a stranger.
 
Let me restate, {although I think that you are just kidding around, a good sense of humor is needed in trading}

There are no leading indicators other than Volume based. And even then you need to use caution and good Managment skills.
 
I can't speak for everyone but I can offer a practical opinion from my personal experience day trading gbp/usd
using macd on intraday trends. ( in a range, macd did not work for me at all).

Stating the obvious, I was always late (late potato or the gravy) or even missed out on some smaller trends because
of the lag. But some of the trends lasted long enough to ride it out and to make some money.
Sometimes, I broke my macd rule and got in a trade a bit early, just because the price pattern/action suggested
what the market "might" do. MACD confirmed "a bit" later. Those were the best trades.
Based on this experience and the fact that MACD is derived from the price why not follow the price itself?

MACD is less subjective than price action. Specific rules could be applied to macd and followed. Also, since
you're lagging, the price might have already "moved" and the picture is clearer.
With price action, it would seem, the price pattern is never the same, the information is never complete and
the picture not that clear. Price action/pattern requires LOT of screen time to understand what the price is
suggesting. Not everyone is willing to put in the screen time to understand the dynamics, price patterns and
its context.

But If you do ...

Bottom line, it's not about macd or pa but it's about making money. If you're making money with macd, good for
you. If you stick around long enough and you're more of an artist, you'll gravitate towards price action/patterns.
If you're more of a scientist, you'll probably come up with your own custom indicator.

good luck to you.
G.
 
Quote from hedonQ:

Bottom line, it's not about macd or pa but it's about making money. If you're making money with macd, good for
you. If you stick around long enough and you're more of an artist, you'll gravitate towards price action/patterns.
If you're more of a scientist, you'll probably come up with your own custom indicator.

good luck to you.
G.
More...
Well said. :)

GL
 
Quote from bigdavediode:

Can you please post some of these studies? They may be a useful read.
More...

You can start here. There has been a lot of work, and most of it is not on the internet.

http://en.wikipedia.org/wiki/Technical_analysis

The problem is, that even when some value is found, they tend to be useless once commissions, slippage and fees are included. This fact is usually left out by people who claim positive studies.

Here is one book on the subject:

http://www.amazon.com/Evidence-Base...=sr_1_1?ie=UTF8&s=books&qid=1219508613&sr=8-1
 
These studies are useless and do not address the real mechanics of Technical Analysis. We are not attempting to predict future price movment based on past price action. This study performed by "Academia" is no more insightfull than a study of Heavy Metal music conducted by the Boston Pops.

TA is simply the study of current price action and how best to profit. Is it coincidence that price will stall at critical Fibonacci levels or even at Support or Resistance? One only need look at all charts to see this. Why do you think that there are those that make fortunes in the Markets?

There are just as many studies for TA as thare are against. Just because you find a study on the internet where "Academia" was involved does not make it fact. The only real facts are gleaned from performing your own studies and the truth will either make you rich or it will make you poor. If your study makes you rich then Technical Analysis is valid. If it makes you poor then it is not.
 
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