Has anyone found a technical indicator that has a high degree of repeating itself? Does anyone track such percentages? I have found that a high VIX reading is a fairly reliable indicator of a market turn, or any stochastic reading that is in the high 90's or low single numbers to be somewhat reliable. Any suggestions?
Technical indicators are not so useful by themselves and the two you mentioned can be unreliable in this regard. Sometimes theis indicator will oscillate in a periodic fashion but many times it won't. A trending stock will often have a stochastic in overbought/oversold region for extended periods on various timeframes. The indicator can flutter there until weakness in the trend begins to emerge. The VIX at certain levels is no gaurantee. A high VIX should be determined by its relation or extension away from certain moving averages, like a 10 day sma for shorter swings and an extension from 200 sma for important turning points. You have to combine these with other factors, like price levels and S/R, price deviation, moving averages, Fibonacci levels, Put/Call ratio, fund flows, etc. to get a better sense of key moments. People use all these plus Gann and Elliot. Its endless but if several key indicators line up, you will begin to have an edge.
banjo, I have used http://www.marketscreen.com/report/index.asp?chp=trend also. dgabriel, I realize it is very subjective. Thank you both.
well, an indicator itself doesn't have an edge. your precise methodology of trading it, might have an edge. and you'll never know unless YOU test. also trading off 1 indicator is prolly not the way to go. i believe a "confluence" of several indicators gives one an edge.