You are in that place apparently. what you suggest happening caan be cured by revising the set of signals that you use from a given indicator. Give us all a specific example of how you are doing this and we can then suggest which signals you are using that need to be dropped and then we can also give you the replacement signals so you won't be caught there any more. there is also a chance that you may be using indicators that have a greater lag than necessary. You could be making both mistakes as well. For learning of others maybe you could be specific in the type of indicators you have tried and dropped.
Caught where? I don't use indicators at all, and so far I'm doing much better than your students. Therefore, I can't imagine why I'd want to change anything. --Db
I was referring to typical oscillator based systems, where you buy when the red line crosses the blue line. What you are using sounds more like a trend filter and support and resistance levels, which is a sound approach.
Good. I look forward to the xo. Do not post your dailies, I wouldn't want to scare my weasels. Let us know the rate of closure though, that will build even more tension in your neat posts. It is good to have some non weasels in the picture.
If you read the bible (market wizard books), it seems almost none of them use indicators and in fact show great disdain for 'canned' indicators. I am definitely in Richard Dennis's camp in being totally empirical about the markets; btw I only trade indexes and other futures mkts where price patterns and simple range breakouts definitely work. What I like about range breakout systems is that it gives you a roadmap, you know way ahead of time where your entry/reversal point would be. As compared to indicator based systems where its very hard to extrapolate where you next signal may be. On a side note, db I can't believe you are wasting your time arguing with Jack and trying to figure out his jack speak.
There was an old vaudevillian named Cliff Nazarro. He specialized in "double-talk". He'd begin his part of the routine with perfectly ordinary, understandable sentences, but then he'd begin to insert words that were legitimate words but which had no place in what he was saying. Therefore, people would look at him with blank stares trying to interpret what he was saying, believing that it was their fault for not understanding since all the words were ordinary English words. He didn't use made-up words like Jerry Lewis did; he seemed to be making perfect sense. Sid Caesar did something similar in the fifties, and Robin Williams now. (If you're interested, catch You'll Never Get Rich on TCM sometime; he acts as an information clerk at the railroad station, "helping" Fred Astaire with a timetable.) Jack Hershey is our resident Cliff Nazarro. If you don't think of it as comic relief, you'll start banging your head against the wall --Db
Pretty much, we use a leading momentum oscillator and I guess what could be called an historical indicator. Our Strategy is to put on a position during the time most likely to see a seasonal readjustment. Divergences between price and our momentum oscillator assist with timing the entry. Additions are often built on successive price breakouts. Divergences between price and our historical patterns, or running out of time lead to exits. -ooO-(GoldTrader)-Ooo-