Most commonly used study indicator in futures market ?

[bone]

I find Murphy (and all books I've seen thus far on "technical analysis") to be less-than-worthless -- in other words, costly. Horrible claptrap blockheaded empirical idiocy, AND religion, all rolled into one.

Now! That said?? LOVED your post. Truly good stuff. "Gold."

No way that Murphy was a trader. Big difference...

 

[bloomberg1]

No way that Murphy was a trader. Big difference...

Once you've read Murphy's Book on Technical Indicators at least three times thoroughly cover-to-cover and you've experimented with every indicator to the point of building your own custom indicators you will realize that there are essentially three types of technical indicators - the plurality are just species subsets of one of the three genus.

I've been doing client work for a decade now whilst trading for myself, and the most common error I see with new clients is that they truly know very little about the indicators that they have been using. Most every client I take on comes to me using technical indicators incorrectly. I commonly see traders using redundant indicators; often for confirmation - which is NOT what you want to do. (you don't really want to confirm an oscillator with another oscillator as an example)

The correct use of time frame sampling (and the application of multiple time frames) is the most underutilized and underappreciated gem that I see when it comes to TA.

If I use one hour or half-hour time frame increments to view the market what sort of indicator or indicators would be useful to use in conjunction with?? thanks

 

[bone]

If I use one hour or half-hour time frame increments to view the market what sort of indicator or indicators would be useful to use in conjunction with?? thanks

Are you day trading, swing trading, or long(ish) term trading ?

 

[bloomberg1]

Are you day trading, swing trading, or long(ish) term trading ?

Day

Thanks

 

[bone]

Day

Thanks

When I day traded for a living - I would print out charts of the Weekly and Daily every so often just to use as a reference. I currently keep them tabbed. I would day trade off of 360, 15, and 5 minute charts. I have always found that using multiple timeframes was incredibly useful in terms of keeping a perspective on both short term spec order flows and the longer term institutional bias.

In terms of TA - after a few years I came to write my own study programs. It was just a natural progression for me in my quest for consistency. I would urge the OP to experiment with intervals (never use the default values) on a moving average study, an oscillator like RSI, and a volatility study like the Bollinger Bands. I've always found that experimentation works best - both with sampling period intervals and with more advanced concepts like a study-on-a-study.

Personally I use a custom study I developed expressly for futures spreads. What's more important is the four rules sets that have to be satisfied in order to confirm a buy or sell entry. i also have an ATR/volatility-based procedure to determine both a stop-loss level and a profit target which I set at the time of trade entry.

YMMV

I wish everyone good fortune !

 

[maxinger]

" Once you have the determination, courage and confidence to delete all your 'precious' indicators,

you are getting closer to reaching financial freedom !!! "

 

[schizo]

" Once you have the determination, courage and confidence to delete all your 'precious' indicators,

you are getting closer to reaching financial freedom !!! "

Pure Price Action is the King of All Indicators

 

[maxinger]

Pure Price Action is the King of All Indicators

 

[speedo]

I find Murphy (and all books I've seen thus far on "technical analysis") to be less-than-worthless -- in other words, costly. Horrible claptrap blockheaded empirical idiocy, AND religion, all rolled into one.

Now! That said?? LOVED your post. Truly good stuff. "Gold."

What Murphy does well is define the tools, beyond that it's up to the pilgrim.

 

[maxinger]

Years ago, I attended numerous trading courses.

2 of the coaches who taught outright trading and were unsuccessful traders used tons and tons of indicators.
of course I didn't know they were hopeless traders until years later.

3 of the coaches who taught outright trading and were successful traders hardly use indicators

2 of the coaches who taught spread trading didn't use any indicator.

course fee ranged from $2k to $4k.
that was years ago.

anyway go discover yourself and Good luck mister.