For somebody who keeps demanding trades, we've yet to see one of yours. Show us what a great indicator RSI is.
I know it was momentum indicator but which one (you never said)? You also do not describe its use. Anyone can post charts but they mean nothing without interpretation. So at least we have established a BUY signal at 3-21-11. Here is how I would have viewed that trade... See the chart below showing the same BUY signals on the daily using MACD and RSI and EMA crosses and trend line breaks. No complicated calculations just looking at 1970's signals that still work today!! I have also included a detailed view of the SHORT SPY trade I took on 7-27-11. The trades in my trend trading system are based off the 60 min chart but no trades are taken unless they coincide with the same BUY or SELL signals on the Daily as well as the Weekly charts. So ALL 3 time frames MUST give the same signal on MACD, Histogram, Stoch, and EMA Crosses. Simple... Nothing fancy!! No pocket calculator required!! Any stock can be evaluated in 1 min or less this way. The short was SPY @ $130.34 with stop at $132.34. Position was covered on 8-11-11 at 115. $2 risk and $15.34 reward. Simple. As for your pompous attitude kut2K2, I dont mind your imbecile remarks as I have dealt with A**holes like you before. I am confident that I know what I am doing and dont need to make things complicated. You seem to do this and insult others to feel beter about your pathetic life. I at least have proven what I am saying both with YOUR TRADE on the AUD:USD and on my recent short of SPY. So there you have it...detailed data walking you through a trade. Maybe that will provide some education to you and others that feel these 1970's indicators are worthless. I'm sure you will say that they are still worthless....but in your hands they probably would be. Only one chart can be posted so the others are on next 3 posts. Your turn to walk us through a trade....
I did describe its use: above zero for buy, below zero for sell. As to which one, it's proprietary. If it was one of the canned programs you're so fond of, I would just say so. If you can call that convoluted mess "working". I don't. Why need four or five indicators where one should do? If your antiquated indicators are so great, why do they need to confirm each other all the time? First of all, you're comparing apples to oranges. The prices on your chart don't correspond to the actual AUD/USD ratios at that time. But let's move on all the same. Let's look at RSI. You make much of it going above 50 as some sort of signal. And completely ignore the fact that it broke 50 previously but that time it didn't mean anything. Oops! How exactly does one decide when a break is meaningful and when one is not? Apparently your indicators are a lot more "magical" than mine, telepathically communicating to you when they are serious and when they're just foolin' around. Every time you pass a mirror, no doubt. All you've proven is that you needed four or five mediocre indicators to do what one great one can do all by itself. Thanks for proving my point. My basic indicator rule is simple: if your indicator needs confirmation, then you need a better indicator. That's what this thread was getting at: better ways of measuring trend that go beyond the kludge crap of the past. Sorry this went right over your head.
@kut2k2 is this a trend ??? @N54_Fan the best momentum indicator is momentum ozzilator, thats why it is called momentum........