Williams %R

[Buy1Sell2]

Quote from KS96:

Backtest it, and come back to me.
I bet you will do better if you fade
its most obvious signals.

I don't use %R--I'm talking about other indicators. When they are used in combination with price, they are better than price alone. I use them to help me "see" the movements of price.

 

[hypostomus]

"Oh, faithless generation that seeks a sign!"

You are far better off learning how to interpret price and volume action. But that requires constant attentiveness and continuous interpretive thought. An indicator is sooooo much less trouble. And they are all sooooo up to date, the most recent one of them having been invented at least forty years ago.

 

[KS96]

Quote from Pekelo:

I never bought a book on Williams. I check out different indicators, and if I like what I see, I test them. If it doesn't work, I throw it away, if it works, it gets introduced to my trading arzenal. Occasionally I use an indicator not how it was intended, but the way how I think it is useful...

I will testtrade Williams today, I will report back how it went....

You may be wasting your time...

Two things work in today's markets:

1) fading (bait 'n' reverse),
although this seems to become noisy as well
and you may end-up where you started (minus commissions)

2) momentum strategy WITHOUT STOPS (if you have the guts).

 

[Buy1Sell2]

Quote from hypostomus:

"Oh, faithless generation that seeks a sign!"

You are far better off learning how to interpret price and volume action. But that requires constant attentiveness and continuous interpretive thought. An indicator is sooooo much less trouble. And they are all sooooo up to date, the last one of them having been invented at least forty years ago.

Trading without indicators is tying one hand behind your back. I've been successful for 25 years and will continue to use them.

 

[KS96]

Quote from Buy1Sell2:

I don't use %R--I'm talking about other indicators. When they are used in combination with price, they are better than price alone. I use them to help me "see" the movements of price.

From an information theory point of view,
you are wrong. You can't create information out
of nothing. There is nothing more in the price
than what a sharp eye can see.

 

[Buy1Sell2]

Quote from KS96:

From an information theory point of view,
you are wrong. You can't create information out
of nothing. There is nothing more in the price
than what a sharp eye can see.

false

--last communique in this thread for me.

 

[KS96]

Quote from Buy1Sell2:

false

--last communique in this thread for me.

Going to get busy tuning your indicators
over and over ?

 

[hypostomus]

"There is nothing more in the price
than what a sharp eye can see."

Dunno 'bout that. These old eyes aren't so good at creating smoothed first and second derivatives of price.

 

[KS96]

Quote from hypostomus:

"There is nothing more in the price
than what a sharp eye can see."

Dunno 'bout that. These old eyes aren't so good at creating smoothed first and second derivatives of price.

You have a point in this. Indicators can be helpful to
bad eyes. But still, you will only "see" the things that
the indicator's parameters allow you to see,
while with a naked eye your brain will try to match
a fit dozens of parameters in a split second.

In any case, you won't create magically any new information.

 

[hypostomus]

Well, since you are an information theorist, and just to keep the banter going, those of us who haven't quite convinced ourselves that the market is all signal, and may just be a mite noisy, like to think that various estimation and decision theories might have some value, like Kalman filtering. So I run filters on price and volume. A mere superstition, no doubt. Just as I am prone to mistake noise for signal, I am also prone to miss signal in noise.