wasp
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Whether you draw it or imagine it, its still there 'indicating'.........
I could post a chart with an HMA on it near perfect to a trendline...... Both say the same thing so both just the same no?
Indicators Are Not Liars
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Whether you draw it or imagine it, its still there 'indicating'.........
I could post a chart with an HMA on it near perfect to a trendline...... Both say the same thing so both just the same no?
When it's history. i.e. as soon as it is replaced by a new price. That is why many people like tick charts. I go for a more leisurely, higher TF, myself, though.
Split
2George
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Trendlines
I specialise in the CCI so i know how good it is but divergence would not be safe without set trap trendlines (over bear and under bull candles and ignore spikes) and support/resistance levels. It is the combination of these three that adds the extra safety.
There is no one thing that can be relied on, and I include the price in that category. Gaps and spikes are testimony in themselves. However, if you do trade the price only then I have no problem with it.
If you are building a house start with a solid foundation, then, if you make a hash of the wiring you don't have to knock the house down.
Learn slow, earn faster.
Regards
George
I specialise in the CCI so i know how good it is but divergence would not be safe without set trap trendlines (over bear and under bull candles and ignore spikes) and support/resistance levels. It is the combination of these three that adds the extra safety.
There is no one thing that can be relied on, and I include the price in that category. Gaps and spikes are testimony in themselves. However, if you do trade the price only then I have no problem with it.
If you are building a house start with a solid foundation, then, if you make a hash of the wiring you don't have to knock the house down.
Learn slow, earn faster.
Regards
George
LOL! This is going to get picky.
One bar indicates nothing and tells you nothing about where price is going. With two bars you start to get a better picture.
When the seris of bars breaks from the trendline either drawn or imaginary it is no longer indicating. It is telling you where it is going.
Are you saying Wasp that you don't even use 'trendlines'? Not even subconciously?
wasp
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Thus, it indicated right up till it happened and there you have the result... much the same as 2 MA's crossing and price crossing over and breaking out.
What I may or may not do is not the point!
Thus, it indicated right up till it happened and there you have the result... much the same as 2 MA's crossing and price crossing over and breaking out.
What I may or may not do is not the point!
ROFLMAO! True.
2 MA's? But they lag don't they? Aren't ALL indicators only a lagging moving average of the price?
wasp
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A big circle going on here me thinks!
Yes, indicators lag, and as we have just shown, so does a trendline based on price... So what you gonna do?!
That's the second time that string of letters has been thrown at me this morning. I felt too ignorant to ask the first time but, now, I must!
Split
Do you mean the ROFLMAO Split?
'Roll on floor laughing my **** off.'
There is even a urban dictionary you can google for even more obtuse definitions.
A big circle going on here me thinks!
Yes, indicators lag, and as we have just shown, so does a trendline based on price... So what you gonna do?!
That's it then. Thread over.
Might as well close it now please mods.
wasp
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Really Split... keep up with the 'yoof' of today!
Urban Dictionary: ROFLMAO
Acronym - Encyclopedia Dramatica
wasp
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Indicators vs Price.....
Take a top down approach and see how we are really lagging and which really wins;
Central banks > purely fundamental and FIRST to know
Large Hedge funds > 90% fundamental, maybe a yearly chart
Investment banks > Possible charts with historic levels yet also largely fundamental
Now come the chartists........
Smaller IBs and HF's > price based on historic levels, fundamentals and POSSIBLY an MA on larger TF's
Retailers > irrelevant
It is of my humble opinion, that one should trade on what one thinks those with money are doing and in my experience, they are trading on FUNDAMENTALS and HISTORIC LEVELS. Indicators show this data in pretty coloured lines but historic levels and trends are the key to 90% of all movement and they are via HrH's and HrL's or, trendlines..........
As for lagging, of course we are, we are the lowest denominator, the last rung on the food chain.......!
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alan5616
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Team Trader,
I have to disagree with your claim that those who do not use technical indicators are "called unemployed pro traders". I know of two, both highly successful, who have never used a technical indicator throughout their trading careers.
The problem with technical indicators is that the patterns they produce are based on past data. This may be a week, a day, an hour or even 5 minutes ago, depending on the tf that you are using. They do not and cannot predict where the price will move in the future. I'm very firmly in Wasp's camp on this subject. Price action is what matters not, what a particular indicator is showing.
The best evidence I can offer, in supporting Wasp's opinion and my own, is based on looking at charts in multiple time frames. Let's say, for example, that we're running a daily, hourly, 15 & 5 min chart. The RSI, or other oscillator, on the daily is showing a particular market is oversold but, on the 15 and 5 min chart it's overbought. Which one do you believe? You never have this problem with price action. The market is heading in the direction that the price action dictates not, where the indicator shows it has been!
wasp
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2George
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The RSI is not one I would ever use as my specialism is the CCI but I think that sums it up, to each their own.
As a matter of interest, being overbought or oversold is a bit misleading as when a move comes, it will always show overbought or oversold. I prefer to think of the zero line as a possible change and the overbought or oversold area to be trading - either going in or coming out.
Learning by other people's mistakes is more profitable.
Good luck.
Regards
George
As a matter of interest, being overbought or oversold is a bit misleading as when a move comes, it will always show overbought or oversold. I prefer to think of the zero line as a possible change and the overbought or oversold area to be trading - either going in or coming out.
Learning by other people's mistakes is more profitable.
Good luck.
Regards
George
I have a camp?!
It's all in the wrist action.
Shouldn't this be on the other thread that the green squidgy thing started. They get squidgy when you step on them.
wasp
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Now, now options, not THAT sort of camp!
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wasp
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Its funny, because last week, I was listening to Mervyn King talk about the economy and I had to do a double take as I couldn't believe he said that the economy, and thus the pound, was going down the toilet because the MACD changed direction and crossed over the 0 line......
Well I never I thought!
Well I never I thought!
