60% (.60) x (times) 60% (.60) = .36 or 36% 200% huh?? It would be nice if it worked that way but it doesn't. You multiply the percentages not add them and the maximum result is always 100%.
I think that is good advice generally. Most new analyst get confused because they don't know what the indicator is supposed to do. They will have an RSI up with a Stoc, or something odd like that. Best is to use a single indicator and learn to read price. ergodic, stochastics, 3/10/16 MACD, CCI(14), any ONE of these will help a new analyst find her way in murky waters. Indicators are like training wheels, and should not be used forever. They must also be used correctly and trade price, not the indicator, etc, etc, ad nauseum. Caveat Emptor.
Picture it this way You got 1/2 a cake - ok then you get another cake and cut it in half so you got 50% + 50% = 1 whole cake. Not 50% * 50% = 25% or a quarter of 1 cake QED prof
First, you said you weren't a mathamatician so don't try now. 50% times 50% is 25% . . . period. You multiply percentages when compounding . . . not add them together. Call your local elementary school and ask to speak to a 5th grade math teacher and ask them. It is no wonder they have no problem finding contestants for the TV show, "Are you Smarter than a 5th Grader".
I guess in the real world you might be a salesman. When splitting 2 cakes fairly between 2 people - which should be 1 each. In your world the customer gets a quarter share of 2 cakes i.e. half a cake and low and behold you got 1 and half cakes !! Republican logic or what Anyone shaking hands with you dude better count their fingers afterward !! lol
50% + 50% = 100% TRUE But we aren't splitting cakes we are compounding percentages of DIFFERENT indicators. The given procedure when compounding percentages is to multiply them not add them. 50% correct picks of a MACD + 50% correct picks of a STOCHASTIC = 100%???? Wow if this were true it would be wonderful but this statement isn't even true. 50% correct picks of a MACD x 50% correct picks of a STOCHASTIC = 25% CRAP That is common sense and elementary math. Adding percentages in order to compound them is Obamanomics. You must have hated the outcome of the Massachusetts election yesterday too huh.
I believe I recovered Humpy's calculator, the one dropped on the way to the short school bus this morning: