The value of an oscillator should be measured how it functions as a component of a somewhat realistic larger context. For example: moving averages and volatility bands define where the current price is in the structure and oscillators, support/resistance and volume work can be employed determining the extent and exhaustion points of swings. The original question was to general to answer it simply but for a single purpose, slowing of momentum, MACD is definitely useful. Best, GC
Dear Guru: I tried six ways from Sunday to get the Mackey D to give me a reliable signal and it is just to slow. I don't care what settings you use. At one time, I wrote my own indicator of indicators and it was to slow in the call and produced to many whipsaws. There are only three, I would underline that if I could, indicators worthy of a discussion in my book and they are: 1. The CCI 2. The Summation Index 3. The Bullish Percent Index I do have a couple of indicators I wrote myself that I look at. They are written in the form of a MA and all I want to know is what is out or under performing at the moment. Dan Clemons, author Manage Your Own Money
To the OP. FWIW. After many years I have found that the most consistent oscillator is the human mind. No joke here. We have all experienced the rapid oscillating of our "trading rules", our "money management", our "stop loss management". and so on. Unitil absolute disipline is achieved, our minds are the ultimate oscillator. Of course I am saying this with a bit of sarcasm, because I know this is not what the OP meant. Only take me for what I am, a struggling, learning and improving trader, but my suggestion is to drop all derived oscillators. If you can wrap your oscillating mind around price action, you have all you need. There are several good traders here that post advice and guidance, I am only offering my experience as a student. Best to you.
Now that you have discovered ProfLogic's CVB, maybe one day you will discover his Ergodic too... ;-)>
Anek, you seem like an intelligent person so don't try exceed your boundaries. You are great at what you do but it isn't anywhere close to what I do. Leave it at that.
Yes, Anek, you see, what you do is: make money from trading. That isn't anywhere close to: bullshitting unsavvy farmers into taking your seminar and buying your special indicator. Please Anek, in future, don't pollute ET with commentary about actual profitable trading -- that would exceed the boundary of ET.