Best indicators ?????????????

Discussion in 'Technical Analysis' started by Humpy, Jan 18, 2010.

  1. bigpapi

    bigpapi

    No need to delete, it summarizes your response, with a little twist, and then provides an eloquent yet satisfying conclusion to your gormless contribution to this post.
     
    #31     Jan 19, 2010
  2. Couldn't help but respond once more.....

    There maybe millions of strategies but there is nothing new under the sun in trading. No one knows the future, you can only bet and control your risk. Once you realize this no amount of derivatives of price is going to help you gauge what is happening now.

    Your best friend in trading is your analysis and whether you start with indicators or without them, if trading is your true passion, you will end in the same place.

    Trading what is happening now.....
     
    #32     Jan 19, 2010
  3. Ignorance is no excuse for not using indicators.

    The only thing ignorant was this saying
     
    #33     Jan 19, 2010
  4. I use it MMindicator
     
    #34     Jan 20, 2010
  5. Humpy

    Humpy

    which is ?

    On a theoretical level it should be possible to write a program to backtest various key indicators and then take the results to make an informed forecast.

    A bit beyond my 2 working braincells but someone should be able to ??
     
    #35     Jan 20, 2010
  6. I disagree.

    Going from eighths to pennies was something very new under the sun.

    Electronic trading, very new under the sun.

    Volatility, while not new under sun, changed the game for many traders.

    Trading is not always what is happening now. Because on some days a big fat nothing is happening now.

    While I agree that price is king, like any new endeavor, stages and milestones have to be built. So, while indicators may crowd your screen, the less experienced trader may more easily see that double top, or the rollover in momentum, which always leads price.

    :)
     
    #36     Jan 20, 2010
  7. Some of the best posts are the first to be posted in a thread!

    Price and Volume are perfectly incorruptible. Once a trade is executed . . . it's history . . . period.
    That being said any chart that isn't primarily based and grounded in Price/Volume ONLY, not time is inherently flawed or born with a major disadvantage.

    EXAMPLE of using multiple indicators to any chart:

    Indicator #1 - Potential 75% accuracy
    add
    Indicator #2 - Potential 75% accuracy
    (now the combined accuracy drops to 56.25%)
    add
    Indicator #3 - Potential 75% accuracy
    (now the combined accuracy drops to 42.1875%)
    add
    Indicator #4 - Potential 75% accuracy
    (now the combined accuracy drops to 31.640625%)

    Go ahead . . . keep adding indicators if you want to continue to lose money.

    Now we all know that the accuracy of ANY indicator, on average, is far less than 75% but I used that to make an extremely "rose colored" point. Now look at using a better example of just 60%.

    Indicator #1 - Potential 60% accuracy
    add
    Indicator #2 - Potential 60% accuracy
    (now the combined accuracy drops to 36%)
    add
    Indicator #3 - Potential 60% accuracy
    (now the combined accuracy drops to 21.6%)
    add
    Indicator #4 - Potential 60% accuracy
    (now the combined accuracy drops to 12.96%)

    It is no wonder that 95% of traders fail.

    Starting with a chart that isn't based in Price/Volume and then adding multiple indicators . . . you might as well donate your money to the market directly and then go fishing.
     
    #37     Jan 20, 2010
  8. But.......

    Don't u use a momentum based indicator to confirm that price has taken a certain direction?
     
    #38     Jan 20, 2010
  9. Yes, I use Price/Volume based charts with a single indicator to confirm the creation of price oscillations.

    I use a single indicator for the exact reason I stated earlier and the accuracy of that indicator is in direct relation to the accuracy of the oscillations created on the charting I use. I would NEVER use multiple different indicators on a chart . . . EVER!!!
     
    #39     Jan 20, 2010
  10. Humpy

    Humpy

    I don't claim to be a mathematician but are you sure you got your sums right ?

    60+60 =120
    out of a possible 200
    equals 60%
     
    #40     Jan 20, 2010