Most Useful Technical Indicators

On 5 min ES use DOM or ES. DOM is not related to chart duration.
focus on spiking monitoring (meaning monitor for the spike of the peak and trough)

combine with:

2 min volume on the YM. Look for R2R and B2B between peaks and troughs.

They come as close to each other (milliseconds if you are a software programmer usinga gating signal approach) as you need for a composite signal. Gate with an or>>>and>>>>or as if it were a band pass filter of two signals. OR is the wakeup call, AND is the actionable gate duration and OR is the shutdown of the optimum profit taking and reentry on the opposite side of the market. The filter for the 2 pair spike test on DOM is a time out type filter that itself goes through the three parts of the trading signal generator so you can use a pos feedback loop with both of them for yielding strength of signal (a statistically significant measure displayed usung a rainbow display). Do the R2R (B2B) filter the same way you would do filtering on either a Welles Wilder dip in RSI or a Connors-Hayward volatility compression/ expansion on price. Un fortunately this stuff is not in books as yet. It will be coming up in SCT trading in a couple of learning cycles when we all go to how to do programming for high money velocity trading. Most highly refined programs can be given boosts of 20% or more in performance by these kinds of tweeks if they have gotten into a reasonable level of money velocity (say greater than 2x (H-L) on the daily range as a basic software beginning point of quality).

QED.
 
Quote from Investorsources:

Im not trying to sound foolish, and yes, I understand that I need to watch carefully what a stock does around key numbers.

Example, say I was watching the SMH the day it traded at 34.50. I believe it was Monday, October 10. The technical indicators were all weak and thus in my favor, example: hitting lower bollinger band, MACD negative, RSI negative, Stochastics negative, also, based on my analysis, it was at support levels..... the thing is.....so what.....all these same indicators were there when the stock was at 35.00 dollars to. And guess what, the stock still proceeded to go down to 34.50 and then 34.00 and then it even hit 33.65 intraday on Wednesday October 12th.

An idiot with any degree of knowledge could have said, yeah, it looks like a buying opportunity, when the stock was at 35.00, based on the above indicators, but only the truly good traders would have known the stock was going lower and that a better buy could be had. That is the point of the people on this board. I understand that, its not that I dont.

So, people say dont base it on the technicals, because even the technicals can be wrong. Okay fine.

1) My question was, which technicals would have prevented the novice who saw the stock at 35.00 from buying based on the above mentioned technicals. Are there any better combinations, and if so which, etc.
Trend following works better in general than trend fading. Overbought/oversold indicators are overrated IMO.
Quote from Investorsources:

2) Okay, everyone says price action and everyone also says tape reading?
Not everybody. :)
 
Quote from Investorsources:

... What is the tape. I picture a large grocery type receipt with all the trades at the different prices for the day. Is it a chart with the candlestick bars, what the hell is the tape. I mean people say watch price action...okay, ill watch. Hmmm, wow, thats interesting, theres about 20-30 ECN's bidding and offering, what the hell am i watching for?

tape, literally
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Most usefult TA.

The one you develop and/or tweak yourself insofar as you hopefully gain the understanding of what is going on. Hence the euphemistic "tape reading" so many talk about.

Read Grob.

Good Luck
 
Quote from duard:

Most usefult TA.

The one you develop and/or tweak yourself insofar as you hopefully gain the understanding of what is going on. Hence the euphemistic "tape reading" so many talk about.

Read Grob.

Good Luck
Indeed.
Reading Jack is almost like reading tape.
:D
 
Posted by Investorsources on 10-12-05 11:19 AM: “What, in the opinion of the people on these boards, are the most useful technical indicators that when they are all saying the same thing will most likely result in profitable trading.”

Four key points to learn:

1. Stock prices are non-stationary noise.

2. Most indictors are lowpass or bandpass filters and hence lag realtime. So they are good at saying how the stock was behaving nBars ago, but are of no value in predicting what the noise is going to do nBars into the future.

3. Price is almost a realtime indicator (with a small lag equal to the SpeedOfLight*Distance + TransactionDelay).

4. Money management is more important than the indicators that you use.

No one is going to give you a Holy Grail indicator that will “most likely result in profitable trading.” Why would someone give a total stranger a basket of money? The only way you are going get an answer to your question is the old fashion way: Do the hard work to find the answer. Buy a software package that backtests combinations of indicators (e.g., strategies) and do the testing and statistical analysis yourself.
 
Its OK to use indicators, as long as you don't give it the same weight as price and volume.

EX: Price = Thanksgiving turkey
Volume = Stuffing
Indicators = gravy
 
Quote from WolfVector:

Posted by Investorsources on 10-12-05 11:19 AM: “What, in the opinion of the people on these boards, are the most useful technical indicators that when they are all saying the same thing will most likely result in profitable trading.”

Four key points to learn:

1. Stock prices are non-stationary noise.
Stock prices have non-stationary noise. If they were all noise, you wouldn't be able to trade them.
Quote from WolfVector:

4. Money management is more important than the indicators that you use.
Money management means squat without an edge. Good indicators will give you that edge. Mediocre indicators won't.
Quote from WolfVector:

No one is going to give you a Holy Grail indicator that will “most likely result in profitable trading.” Why would someone give a total stranger a basket of money? The only way you are going get an answer to your question is the old fashion way: Do the hard work to find the answer. Buy a software package that backtests combinations of indicators (e.g., strategies) and do the testing and statistical analysis yourself.
:cool:
 
Quote from lilduckling:

Its OK to use indicators, as long as you don't give it the same weight as price and volume.

EX: Price = Thanksgiving turkey
Volume = Stuffing
Indicators = gravy


volume = the cash that bought the thanksgiving turkey
 
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