Well, 1 out of 3 is not so bad... Useful is not supported by your or other people's opinions. It is supported by solid evidence. And neither Fib nor EW have much going for it...
Whats useful and not useful in technical analysis
- Thread starter artieboy
- Start date
Well, 1 out of 3 is not so bad... Useful is not supported by your or other people's opinions. It is supported by solid evidence. And neither Fib nor EW have much going for it...
John Carter from tradethemarkets.com is big on what he calls the "squeeze". It occurs during periods of low volatility when the Bollinger bands narrow to squeeze within the Kelter channel. When volatility increases causing the Bollinger bands to go outside the Kelter channel, he calls this a firing of the squeeze, which triggers an entry in the direction of increasing momentum seen on the MACD histogram bars.
He charges for the indicator, but if you have Trade Station, you used to be able to get a free version on the forum called the BB squeeze. I do not have Trade Station anymore and cannot recall the Bollinger Band and Kelter Channel settings he uses. However, I liked the indicator and kind of miss it. You can sign up for his free nightly newsletter where he shows a lot of examples on various markets and time frames.
some people say some stuff works. but does it really or is it based on something else.
for example if u have a price level of yesterday's close which is also a 50% fib, which is it that "work" or is it just coincidence?
i think that people tend to see something touch and bounce and say it "works"
i don't agree that indicators don't work. i agree with the poster above it depends on what kinda profit target and trading style.
for example if u have a price level of yesterday's close which is also a 50% fib, which is it that "work" or is it just coincidence?
i think that people tend to see something touch and bounce and say it "works"
i don't agree that indicators don't work. i agree with the poster above it depends on what kinda profit target and trading style.
Quote from nazzdack:
2) Those things you don't like are "backward looking". Therefore, they have no predictive value.
Disagree.
Any indicator will work. Traders just need to know what the indicator is supposed to indicate.
12/26/9 MACD, (or any number that turns u on) is a trend definer. The histogram on these type of oscillators will turn first, then price will break a moving average on the chart. Then the lines will cross, then those line will break the zero line.
Indicators can and do lead price, if you know what ur looking for and why.
Caveat Emptor
Quote from RCG Trader:
Disagree.
Any indicator will work. Traders just need to know what the indicator is supposed to indicate.
12/26/9 MACD, (or any number that turns u on) is a trend definer. The histogram on these type of oscillators will turn first, then price will break a moving average on the chart. Then the lines will cross, then those line will break the zero line.
Indicators can and do lead price, if you know what ur looking for and why.
Caveat Emptor
Please explain to a dummy like how an indicator using price values as inputs can lead price.
Also your example of MACD behaviour above covers only one of at least three outcomes of price stalling.
That is not a very good set of odds to trade from.
(Don't ask me to explain examples of price stalling outcomes, otherwise I will assume that you do not know them)
I will cut right to the chase as u are obviously not a newbie. MACD histo warns of a price stall as u have adeptly pointed out.
U are assuming linear odds on a non-linear system so probability outcome is based on the system of the trader and not the indicator itself.
A downturning histo should tell the trader to sit up and pay attention.
What they are paying attention to is decrease in momo/volatility.
For many traders, thats the que to start looking to get out if they are in.
For many thats the que to start looking for change in trend.
For many thats the que to start looking for an add on in the event of continuation.
All indicators indicate change or continuation. The trader and system determines what action is appropriate to this change.
Caveat Emptor