My first post.
My approach is skepticism regarding any of the indicators that are bandied about. I've examined several in detail and found all of them wanting in one way or another. For example, when the TA'er draws lines on his chart, he is generally connecting the high (or low) of a SINGLE TRADE with another one. He might be ignoring hundreds of intervening trades, and assuming that those two that he picked out magically tell him the future.
Or, take the calc for Beta. The common method is to take a standard deviation of the data. Two problems: (1) the method assumes a normal distribution (which is unlikely), and (2) unless you do the process in two steps, you are working with deviations from the AVERAGE OF Y, which is a horizontal line! Why in the world would you base your calcs on a nonexistant flat horiz line when most often there is a trend present?
Look at another problem. The "Slow Stochastic" is actually weighted in an odd manner. I don't think the author intended that., but it's true.
After going thru this crap for years, I now disbelieve almost everything I see, and build my own methods, testing them till the cows come home. My batting average for the last 20 trades is 95% wins. Long term average (years) is just below 85%.
There ain't no free lunch, just a lot of complex work.
