Ah...the golden answer of the month, extrapolated from the very core of successful speculation. If the herd are using the same tools, for the same instruments, in the same time frames; what are ones adds of obtaining a strategic edge? default settings and canned indicators almost guarantee lack luster returns. Having said that, It's good to know what the enemy is watching and how to exploit their visibility.
Success doesn't come from indicators... use whatever indicators you want to pick tops / bottoms... You will blow up even with 'great' indicators, if you do not do one simple thing: take your many losses with discipline and move on to the next trade in an unemotional way...
Can someone tell me what's the best parameters for RSI and Stochastic if I use 1min/5min/15min charts for daytrading Index Futures? Thanks.
I use rsi 14 and three sets of stochs at 5;3;3 10;5;5 and 50 ;5;5. These work quite well when used together with trend lines and support/ resistance levels. Hope that helps.
Hi, Snow, Thanks very much for your help. I'll try to use your parameters tomorrow to trade Hong Kong's Hang Seng Index Futures.
In my mind, this assumes everyone is applying the same indicators and analysis -- which is why those hard core fundamental types say TA doesn't work. TA is just a tool -- which depends on the skill of the person using that tool.
But this criticism is invalid since it's just impossible that everyone uses the (same set of) indicators, or have (the same set of) minds! Otherwise you will find it hard to buy an excellent stock from others when it's underpriced; or hard to sell a cheap stock to others when it's overpriced! Also if there's no one which watches this market. Probably this market is very illiquid which is the dealth to technical analysis!
You need only two, and they aren't "indicators" as the term is generally used. The first is the difference between volume of advancers and volume of decliners. The second is new highs and new lows. These are what professionals look at but novices rarely (as in practically never) look at. And they can't be manipulated and don't require settings of any kind. They just are. And if you had followed them regularly, you would have been in a position to take advantage of the downdraft on the 3rd and the bounce last Friday. If you're interested, just do a search using "avdvd". Lamont
Well, you might just have to do your own testing, what is probably the best. So try a software where you can have all those indicators and see how they react to the stock's or market's movements. What works for one, might be unsuitable for other. If you don't have a software, use the free website bigcharts.com, you can test most indicators there. Personally I use BB with Williams on a 5 mins chart. In a non-trending enviroment they are excellent for tops/bottoms...