Not certain who all is here, but I'll assume you are just talking to ian.I believe you'll never see any real time calls from him or any others. It's all just theory. There will be the usual things like "I don't want to give out secrets" or "I've laid the groundwork, now you take it and run" etc etc etc. --This is just a cop out instead of providing any validity. It's just paper money.
When Indicators Don't Lag
- Thread starter BOC
- Start date
Algos fading indicators ? It seems to be a very difficult task.
Take MACD as an example. There are the most popular setting, Linda Raschke's setting, Bill Williams' setting, my own setting, etc.. What settings are the algos targeting at ? In addition, traders may study time-based charts(one-minute, two-minute, one-day, one-week, one-month, etc.), tick charts (1,000-tick, 2,000-tick, 3,000-tick, etc.), volume chart, range-bar chart, renko chart, etc. What type of charts are they fading ? The best these algos may do is to take advantage of the most common setting for charts that most people are looking at.
I do share dbphoenix's concern that one can make the divergence appear or disappear by changing the setting of an indicator.
Just my two cents.
There is also the issue of a "divergence" disappearing in real time once a bar/candle is completed. One isn't aware of this in static hindsight charts since everything is done. But in live trading, these "signal lines" can cross and uncross even as one is watching them do so. Only after the bar is complete and time has marched on is the cross or lack thereof permanent.
They don't.
Always use the standard settings. Learn to trade with those and what price action is likely to do when those divergences happen.
Or learn to detect divergences without the use of indicators. Then you don't have to worry about "settings" at all.
DB, you speak of price only analysis as if it's some sort of grail, but price games also take place all the time, so I guess what I am saying is that NOTHING is 100%, be it indicator based or not.
Even the developers of said indicators, from Appel (MACD) to Lane (Stochastics) would not agree with that statement. Lane, for example, went to great lengths to suggest that one characterize the market one is trading, and then to adjust the periodicity of the indicators to the individual market's individual cyclic tendency. Appel suggested the use of two very different settings - one for initiating long positions and the other for managing stops on longs and initiating short positions.
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Now I understand why you are fishing for information. If I would use such a "high tech" system as you, I would fish everywhere desperately too. And you use the standard settings????
May I remind you that you do like I do: post without any proof.
No, it's not. But whereas trading with indicators is like having sex with a condom, most would rather do without.