Discussion in 'Technical Analysis' started by wbbank, Mar 21, 2009.
Does anybody use these as their indicators for an entry point?
IMHO & FWIW
Yes Sir I'm sure some do
You should also know
There are more ways to trade successfully than anyone can count
There is no right way or wrong way to trade â there are only profitable ways and non-profitable ways â to trade
Trading successfully can be as hard or easy as you chose to make it
There are no experts
Everything you need to know to trade succesful is already on a price chart (in fact itâs on every chart)
There's a lot one needs to know to trade profitably, but then there are some things one will never know
Food for Thought Sir
Bollinger bands, RSI & Sma ?
Never heard of 'em.
I'm developing a system using primarily these indicators. I've got some pretty darn good results so far in back testing in AmiBroker but as these systems will necessarily result in a Mean Reversion style of trading I'm looking for some good ways to stay out of the way of trend days.
Any ideas/suggestions greatly appreciated!
I use all 3. BB is mostly for mean reversal. RSI divergence is perfect for double top/bottom. SMA keeps you in the trend on the right side....
The theory behind the bollinger bands is that the market will not stry to far outside the 2nd standard deviation. However as we all know, on days like today you can see that this indicator will get you killed.
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