Sounds like you have had limited success if any
What is your FAVORITE indicator?
- Thread starter Saltynuts
- Start date
Enough to abandon all off-chart indicators. I just use 20, 50 and 200EMAs now. It's going well. For me, long-term trend-following is the only rational approach and off-chart indicators don't add anything significant.
What is your FAVORITE indicator?
FEAR, study charts enough, you will find it often times before they happen.
It is like driving a car during rush hour, you in 2nd lane and YOU just know that sob to your right is going to cut you off and you have foot on break and that other car crosses you by a foot off your fender. Now the question is, do you hit horn then give him the bird or get in 3rd lane and pass him giving him the finger.
FEAR, study charts enough, you will find it often times before they happen.
It is like driving a car during rush hour, you in 2nd lane and YOU just know that sob to your right is going to cut you off and you have foot on break and that other car crosses you by a foot off your fender. Now the question is, do you hit horn then give him the bird or get in 3rd lane and pass him giving him the finger.
do you trend or counter trend with ZZ?
about 50% of my trades are reversal & 50% continuation.
definitely definition between reversal and countertrend could be rather blurr.
The defenition is quite simple.A big zz line against a smaller one.Which one you trade and in what direction.
Favourite indicator: value volatility per contract divided by total account value. This tells me how risky an investment in this instrument is.
I meant to comment on this days ago, but got distracted.
But I didn't realize that my own approach, basically, to consideration of longer-term market action -- like yours, tomorton -- doesn't really involve "indicators" at all, besides perhaps a 20/50/200 [SMA] cut. I forget that as an instinctive tick-scalper (with a whole protocol of 1 each: trend, volatility, oscillator indicators for short-term), I look at longer-term stuff with price and volume alone. (*Nearly* alone?? I still "respect" the ADX/DMIs on longer-term stuff, but probably more as a curiosity than anything else. Huh!
)Yeah: I just checked my SPX chart, which I use with 1day or 1week candles, out between 3 months to 5+ years. I have trend lines drawn on it. I have a 2% envelope following price. These have been helpful.
OFF-chart, I have
a Lane's Stochastic (useless in an uptrend),
a Chaiken Volatility measure (algebraically, a slight re-do of ATR), I put it on a month or so back, to watch it and see what it does. A mild question.
an ATR (a check on HV and IV as charted nearby)
the HV and IV (for gauging the options market)
and the aforementioned ADX/DMIs which -- having just checked -- provide a pretty good set of entry/exit inputs, should I have wished. (Undoubtedly, they informed a lot of top-side/bottom-side bias in positioning option spreads -- just not something of which I took explicit note.)
So, on my "whole" SPX chart, I have 5 indicators: 3 as measures of option-selling attractiveness (nearly unrelated to SPX pricing), 1 price oscillator (useless), and 1actually used+useful (the ADX/DMIs).
THE WHY of this is something that we could debate for a while, I think. For myself, my "Overall Market Thesis" says, "If it lasts more than 36 hours, it's driven by fundamentals and will not be measurable/informed by an indicator." whereas non-noise movements of shorter duration (1min to 1-hour) might be *sparked* by fundamentals, but will be hard to hide from technical discernment.
!! [And in-between, since I'm jotting down random points, comes the TRIN, to bridge the 1-hour and the 1-day range. Hard to hide big selling/buying agendas from TRIN impact. "Yay!"]
AND SO, BACK TO THE ORIGINAL POST........
What's my *favorite* indicator??
"It depends."
Short term (1min candles, maybe 1hour).... Lane's Stochastic, informed by the nearly-redundant Money Flow Index. (divergences get my attention -- the MFI is volume-weighted.)
Long-term (1day to 1week candles)... 20/50/200 SMAs, informed by the ADX/DMIs (which, if you're *really* up on your skill set, are candles reworked to a linear form).
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