Best indicators to guess tops/bottoms; determine overbought/oversold areas

Discussion in 'Technical Analysis' started by WmWaster, Mar 11, 2006.

  1. Mmm interesting.

    Does AVDVD do the same job as Accumulation Distribution indicator? Is there a difference?

    What is the experience with AVDVD?
     
    #21     Mar 12, 2006
  2. romik

    romik

    good solid recommendation, apart from the statement "You need only two"
     
    #22     Mar 12, 2006
    Buy1Sell2 likes this.
  3. It's not an indicator. It's simply data, like price. Volume of advancers. Volume of decliners.

    As for experience, I can recall only two false signals since 1990 (Nasdaq data before then is sketchy).
     
    #23     Mar 12, 2006
  4. Yes, I think all sorts of overbought/oversold indicators are only applicable to trading/sideways markets. They keep failing in trending markets.

    What software do you use?
     
    #24     Mar 12, 2006
  5. A google search of "avdvd" produces many irrelevant results!

    Is there another name for this?
     
    #25     Mar 12, 2006
  6. I meant search ET.
     
    #26     Mar 12, 2006
  7. Investors generally go broke trying to pick tops and bottoms. A lot of 'bottom pickers' lost their shirts in 2001.

    Be patient and wait until the reversal is Obvious and then enter.
     
    #27     Mar 12, 2006
  8. kut2k2

    kut2k2

    This is as it should be. Just as trend indicators cannot predict tops and bottoms, counter-trend indicators (aka overbought / oversold indicators) cannot handle trends adequately.

    Most successful TA traders are trend followers, not counter-trenders. So you might want to re-evaluate your approach to TA. Or, rather than asking for someone here to just hand you a boffo OB/OS indicator, you can design your own and apply it. This involves the scary notions of starting from first principles, and doing research to see what's come before (and failed), and being original in your design of a new indicator. Not an easy task, but potentially rewarding in ways you haven't thought of yet. Good luck.
     
    #28     Mar 12, 2006
  9. Really curious where you got your stats from for this comment. I was not aware that this was the case.
     
    #29     Mar 12, 2006
  10. Buy1Sell2

    Buy1Sell2

    it's because it's false.
     
    #30     Mar 12, 2006