When Indicators Don't Lag

Which is where "divergences" come from. As each of them measures a different aspect of price from the actual print, and as each of them individually can measure these aspects in a multitude of ways depending on the "settings", divergences are an illusion, at least insofar as they are manufactured. Like watching a 3D movie without the glasses.

 

I don't ponder. Pondering is for people who ascribe significance where none exists. They are the suckers who feed the industry that sells indicators. Thanks for your contribution.

 

Somebody said sentiment works in market analysis, well some indicators are pretty good tools for that. Nothing works 100% of the time and indicators only really need to generate around 50% of solid forecasts. Ride them winning trades as long as possible.

 

Which is essentially a coin flip.

 

We once invested with a major capital management firm based in the City, they were investing based on fundamentals only, within first 6 months portfolio was down around 30%, when questioned their reply was simple - it's a long term investment plan.

 

A coin flip ends with the result of the flip, riding a winning trade negates losses.

 

And riding a losing trade negates wins.

 

That's a learning curve my friend, I have been there, have you?

 

Unfortunately, most go off the road. They're so excited about any profit, whether planned or accidental, that they cut their profits short and settle back into their normal modus operandi. Which is why theoretical discussions about this sort of thing may be interesting and even fun, but they don't mean much without a thoroughly-tested and consistently-profitable trading plan. And those are thin on the ground.

 

Besides not pondering I guess you also don't understand that you basically repeated what TRO said.

When you change the timeframe you change the indicator output but not the more important data point - price, which stays the same no matter what. Yes simple and simply ignored by all the indicator junkies - especially MA's users.

I have no problem with those who sell legit indicators or those who criticize others who sell illegitimate ones. But I have known of TRO, through the net, for at least 15 years. I haven't bought a thing from him. But he sure does know how to code and I would guess most (not all obviously) of what he has done has been free to any and all. Not many can say that.