Good guess, but no truth in price either but better than most indicators though in a way snake swallowing its tail.
Which is your favourite indicator and why ?
- Thread starter Humpy
- Start date
Good guess, but no truth in price either but better than most indicators though in a way snake swallowing its tail.
All indicators are good but the trouble is most don't bother to work out the ins/outs of an indicator. That can take a year and often years. See, it's not always about how/why the indicator works when it works it's also about the how/why when it fails as they can either offer great trades or a big hint to get out.
I maintain that somebody studying the RSI for 1-2 years could build a great trading strategy out of just that, but it cannot be programmed. If it could then the guys with super computers would have found the patterns. If I was going to use the RSI what I'd do is concentrate on where it fails, where it's 70+ but the market doesn't go down, then look to jump on the move against the RSI, ie look for longs. Those moves I bet would be explosive, not always of course but a lot of the time hence a small stop could be used and if right big profits, 3:1 to 10:1.
I maintain that somebody studying the RSI for 1-2 years could build a great trading strategy out of just that, but it cannot be programmed. If it could then the guys with super computers would have found the patterns. If I was going to use the RSI what I'd do is concentrate on where it fails, where it's 70+ but the market doesn't go down, then look to jump on the move against the RSI, ie look for longs. Those moves I bet would be explosive, not always of course but a lot of the time hence a small stop could be used and if right big profits, 3:1 to 10:1.
I agree completely.
Indeed - this must surely be so.
This makes complete sense. (I used to use Bollinger Bands, of various settings, in a very similar way - with some success.)
RSI, MACD BB. None better.
ad hominem.
Anyway, the OP asked for my favorite indicator, a subjective response; an opinion. My answer is an opinion, not asserted here as fact.
In another thread I'm fairly sure I took stochastics or something and made it into a system where you buy when oversold and sell when it is too high. Then I took the same indicator and said to buy when it is overbought and sell when oversold. I color coded the range so you could tell from looking when these points were.
Both of them worked sometimes. This is why stochastics doesn't work.
Perhaps you have found a way to make stochastics profitable but I could not.
Both of them worked sometimes. This is why stochastics doesn't work.
Perhaps you have found a way to make stochastics profitable but I could not.
L
lovethetrade
ad hominem.
Anyway, the OP asked for my favorite indicator, a subjective response; an opinion. My answer is an opinion, not asserted here as fact.
Except it's the type of response usually given by someone with 30 years industry experience and a PhD in economics.
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