The RSI ... modified

Discussion in 'Technical Analysis' started by carlberky, Aug 7, 2013.

  1. Could not agree with your more, just felt it was a necessary addition to your previous commentary.

    Thank you
     
    #11     Aug 7, 2013
  2. If you do not see "some predictive value" in the attached segment, then you looking but not seeing.
     
    #12     Aug 7, 2013
  3. maxpi

    maxpi

    It's impossible and Maestro will prove it!
     
    #13     Aug 8, 2013
  4. Sergio77

    Sergio77

    If there is a trend then buy a hold and possibly pyramid if you are brave. If there is no trend stay out. This is how big money is made. All else, including pseudo-predictive indicators, mean-reversion, pairs trading, statistical arbitrage and so on is for suckers.
     
    #14     Aug 8, 2013
  5. trilogic

    trilogic

    looking at a daily chart- what is a "trend" how to measure ?
     
    #15     Aug 8, 2013
  6. jsp326

    jsp326

    If predictive value was determined by "quick glances" at charts, all traders would be rich.
     
    #16     Aug 8, 2013
  7. The "quick glance" was not for trading, but to varify that "the indicator peaks and valleys coming before or with the price" was not unique to the chart shown.
     
    #17     Aug 8, 2013
  8. jsp326

    jsp326

    That still doesn't prove anything. Design a set of objective trading rules, backtest test it over a number of years with hundreds of trades, then see if you have anything worthwhile.
     
    #18     Aug 8, 2013
  9. If I did that, would it "prove anything" to the predictive value skeptics on this forum?
     
    #19     Aug 8, 2013
  10. jsp326

    jsp326

    Assuming you did it properly -- and it was robust and profitable -- then yes. There are still a lot of potential pitfalls with backtesting, but it would be much better than screenshots from charts. I've seen tons of indicators/systems that look good on a variety of charts but fail to be profitable on long-term tests.
     
    #20     Aug 8, 2013