Whats useful and not useful in technical analysis

Discussion in 'Trading' started by artieboy, Feb 2, 2010.

  1. jorgez

    jorgez

    But of course, but then so does price, so why use a derivative when you have the real thing.
    Price will tell you much much more than a derivative ever will, since a derivative is simply a derivative ... nothing more and sometimes less.
     
    #21     Feb 3, 2010
  2. Changes in price and volume are sometimes quite subtle, and looking at hundreds of charts a day will eventually begin to wear on the analyst.

    Better is to use indicators as a filter for what one is looking for (such as a stall) and then use price and volume( another indicator) to get the best entry.
     
    #22     Feb 3, 2010
  3. jorgez

    jorgez

    agreed
     
    #23     Feb 3, 2010
  4. 1) That may be true if you are lucky enough to be using an optimal indicator luckily adjusted to an optimal period of the market you are trading.
    2) That could be "true" only if you are using a 1-period setting. Anything larger produces "lag".
    3) Caveat empty your wallet. :cool:
     
    #24     Feb 3, 2010
  5. One more thing.

    Trade the price, not the indicator. Indicators indicate something is changing by a certain amount.

    Its like a drug test, price has to do something to a certain degree for the test to come up positive.

    Price action alone can lead a trader into a situation where they could be trading noise.
     
    #25     Feb 3, 2010
  6. AK100

    AK100

    Technical failures are brilliant, that's where to concentrate your efforts not the text book crap that everyone teaches.
     
    #26     Feb 3, 2010
  7. piezoe

    piezoe

    Indeed!!
     
    #27     Feb 3, 2010