DislikedWhat is the momentum number telling you that you can't see by looking?
Furthermore, what is sacred about the 14th bar back? What does that tell you about what the market is doing right now? Market characteristic can change in 2 or 3 bars.Ignored
All I am saying is to often traders will throw dozens of indicators up onto their charts and not even know what they are telling them. Just because more often than not when the RSI crosses above the 50 mark price continues to go higher doesn't mean that is a logical indication of price movements. You have to look back tons and tons of data to make sure its not just an anomaly, and then ask yourself....
...is ...it ...logical?
figure out what that represents
for example.. the RPM meter in your car.. when you step on the gas the needle rotates clockwise..
if this were an indicator I would say:
"what does this mean"
1. RPM = rotations per minute (of the car's crankshaft)
2. as the numbers increase so does the car's speed
then I would say:
"does this make sense logically?"
and my answer would be, yes!
if there are more rotations of the car's crankshaft over a given period of time then the wheels must naturally spin faster, and the car will move accordingly.
I do agree with you blue, using indicators are not my style, but they do have a purpose for some people and I can not argue they make trading less subjective, which is extremely helpful for people who are new to the game or lack discipline.
But if you use indicators in your trading plan, ask yourself if the indicators used in your strategy are
3. Do not rely on to many parameters