what are your thoughts on indicators that claim to call tops and bottoms?

[murray t turtle]

The principle of indicators like RSI sounds good - price changes slow down before direction reverses. Not 100% accurate, but then the markets are at best semi-chaotic, with so many interfering influences.

But what's really bad about these indicators is that having been wrong, they can stay wrong for bar after bar after bar.......

%%
And a good trend will ignore a RSI + most stuff/indicators. Momentum [price speedometer] gets out of a trend way too early; but to each his own.........

 

[nakachalet]

W

I stopped using indicators for > 1 decade already.
And I will never ever use indictors again, till end of time.

How about showing one of your trading charts, whether it is live or sim,
it does not matter....

Just like to see how is your chart being constructed.... for trading....?

Regards with thx in advance

 

[murray t turtle]

I find top/bottom indicators fail miserably when the market is trending and trending strongly because you just end up with losses and losses and losses with end in sight. Yes the market will eventually turn around but by that time your account might be already bust.

%% One reason i hate them.
But if you like 5-7 months advance notice , could use them LOL

 

[Risepoint1879]

Every indicator I looked into tells me what I already see in the candlesticks, so what's the point. Become familiar with the ebb and flow of the market, and you won't need indicators. (My two sense, I am no indicator expert)

 

[HanSolo]

A lot of traders when they first start out start looking for that magical indicator or combination of indicators that will give them the edge in picking tops and bottoms. I think with time and experience you start to realize it is about probabilities. This is why various break out strategies and patterns are popular. You are playing the probabilities that past patterns will be repeated and with the right setup you can be profitable.

 

[Bigstuff]

Install the Zig Zag indicator and follow him in realtime. You will not believe what you see. Even two or three bars later he can suddenly disappear or change direction.

Traders should be aware that the most recent zig zag line may not be permanent. When the price changes direction, the indicator starts to draw a new line. If that zig zag line does not reach the indicator’s percentage setting and the price of the security reverses direction - that line is removed and replaced by an extended zig zag line in the trend’s original direction.

The short term overbought/oversold indicator is good for that.