%% I like futures for price + volume, LouisN; NOT to learn how to trade-thats the worst way. As far as RSI; no thanks.Some people like stopped clocks, because they're right 2 times per day. Dont try this @ home but one advantage of WAAAAAy to much leverage learning; you may remember the lesson.But wisdom is profitable to direct-NOT a prediction
For day trading I use my own intelligence with direct observation of price action, naked charts, MTFA. No indicators are ever used for real time trading although charts are annotated with straight lines. It is very important to be aware of the timing of market announcements as no indicator will be of any use whatsoever when volatility kicks in and prices yo yo back and forth. When I started trading in the distant past I did go down the usual naive route of using indicators, it didn't take me long to realize that it was foolish to do so. In the past I've swing traded stocks holding positions for periods of days to months. As part of an off line scanning process of a large number of equities, RSI and Stoch indicators were used in the filter to produced a manageable set of equities that could be viewed by eye to decide whether to trade them or not. So apart from using indicators as part of a scanning process they were not used to make trading decisions. Seriously, flipping a coin could vastly improve results for some losing traders, of which most are. At least results should get closer to breakeven rather than losing badly. For those traders who are not objective in making their decisions, flipping a coin to decide to make the next trade long or short and then waiting for the setup to occur would mitigate the tendency of some to fight the market.
Thanks for the feedback. I have no plans to trade futures or to even buy energy stocks/ETFs in the near future. I'm just wanting to learn how to understand these things a bit better by using some of the more widely used indicators. I try to keep up with rig count and other data, but using the technicals is something I am still trying to figure out.
Listen to this guy. I have been trading for almost 8 years now, and CL is a whole another beast. Everything he just said, is golden.
I totally agree with you most newb's do better flipping a coin and why casinos do so well as they leave it to player to make a choice and choices are often wrong. I further believe and advise newbs to learn charting first few years as they don't have a clue what price should be doing when patterns develop, but once you have develop Trading plan and including money management rules, I see no problem using indicators as a way to quickly see from across the room what market doing. I have used indicators since I started in late seventies and doing by hand, but I was lucky then that I had to chart by hand as well. I just find indicators easier for me and at my age anything easier is a plus, you get older and reflexes slow down, you don't realize as years goes by the body slowly starts to hurt by sitting and yet walking around will hurt too, LOL I am glad for you that you can trade with just charts, everyone has there ways of trading for a living. I think way too many believe that indicators are going to predict the future and that is not what they were designed to do, they are to indicate the past and just like price charts, they show us what has already happened and based on our knowledge we have developed rules for entry. Good trading to you.
%% Donchian channel is still down-trending, if you like indicators. SPY + QQQ are much better to learn on, more liquid, that is when you close a position.LOL If i had to use a RSI + i dont have to use RSI; $61 dollars is an important level on weekly 14 days RSI, modified.Another reason I dont like RSI, that level is important on crude light, without RSI.......................................................................................... IBD uses put call ratio; fine, that does not mean i want another indicator.LOL-at my comment.NOT laughing @ anyone .