Throw all indicators to hell! 
use systems and then involve indicators, do not use any of them spontanously
use systems and then involve indicators, do not use any of them spontanously
kiss the trend
- #22
- Mar 9, 2006 1:52pm Mar 9, 2006 1:52pm
- Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts
Indicator bashing?
....
Is that graphical representation of a mathematical formula available for download in either VT or ELA?
Please say yes..
- #23
- Mar 9, 2006 2:02pm Mar 9, 2006 2:02pm
- Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts
Seriously,
All "Price is King" and "Indicators are for Rookies" or whatever fans, are you telling me that you are basing your trades soley on the last bar of the chart. Because if you are not, then you are using historical data that says when this set of circumstances occur, the likelyhood is that this event will follow is increased by history repeating itself.
Also, that it must then be impossible to write code that says if 2 bars ago was a BUBSlugBar and the current bar is a BullPinBar then, ...
I'm simply trying to get clarification on what one would consider an indicator. If I look at past price history to take my trades. I am using price. But if I program, a graphical representation of this price history am I to believe that it is no longer valuable.Understanding the mathematical equations behind indicators can make them valuable tools.But you must take them apartand see what makes them tick.No pun intended.
Let's take a controversial indicator
Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods.
I will venture to guess not many people had even investigated how it was calculated.Just because it's in the over bot zone it simply means that it may encounter resistance.Knowing this can help you Spot price action that is about to happen.. It can alert you, it may break resistance and continue upwards. . Some traders consider this a Stochastic pop.
A truly wise man, always has more questions than answers.
- #26
- Mar 9, 2006 3:22pm Mar 9, 2006 3:22pm
- Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts
Of course, I am not basing my trades on the last bar of the chart
Understanding the mathematical equations behind indicators can make them valuable tools.But you must take them apartand see what makes them tick.No pun intended.
Let's take a controversial indicator
Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods.
I will venture to guess not many people had even investigated how it was calculated.Just because it's in the over bot zone it simply means that it may encounter resistance.Knowing this can help you Spot price action that is about to happen.. It can alert you, it may break resistance and continue upwards. . Some traders consider this a Stochastic pop.
I wasn't referring to you when I asked if trading on last bar.
I was actually referring to those that say the don't use indicators.
- #27
- Edited 4:02pm Mar 9, 2006 3:57pm | Edited 4:02pm
Sorry Claude,
I wasn't referring to you when I asked if trading on last bar.
I was actually referring to those that say the don't use indicators.
OK now that I read your post once again I understand.
I guess I was just looking forward to a debate with you as you always make me think way beyond, what I usually do on my own
A truly wise man, always has more questions than answers.
- #28
- Last Post: Mar 9, 2006 4:27pm Mar 9, 2006 4:27pm
Personally I consider the use of bar charts or candlesticks to be an *aggregation* of price data represented graphically and not an indicator. If someone has an 'indicator' that reads these aggregated prices as candlestick patterns (Highway3000 has been posting some screenshots of his indicator that does this) I would consider it to be merely automation. I would use it as it would make life easier for me. The indicator is looking at prices and would be telling me what I'm seeing anyway. It may be in an 'indicators' package so you can call it an indicator, but I would use it.
I look at price formations, not just the last bar. You can call this looking at indicators if you wish; if we're not discussing the same concept when we use the word indicator it seems that any discussion could be fruitless (like comparing apples and bananas!) speaking of which there are some coxs orange apples on the tree outside begging me to have them for lunch! yum
I consider an indicator to be a package that has applied some transformation or function to the raw price data (not just aggregating it or displaying it visually) and displayed the output somehow. RSI, MACD etc. Most of the time price formations can give me the same information that these indicators are giving me, but not quite as lagged. I don't have any beef with these sorts of indicators. I do snap them on somtimes, but they play second fiddle (they are a secondary tool) to price action.
I agree completely that understanding the calculations used in these indicators (RSI, MACD etc.) enhances your ability to use them successfully, which is part of the reason I don't use them as I have not taken the time to study many of them in depth.
Cheers,
Linc.
I look at price formations, not just the last bar. You can call this looking at indicators if you wish; if we're not discussing the same concept when we use the word indicator it seems that any discussion could be fruitless (like comparing apples and bananas!)
speaking of which there are some coxs orange apples on the tree outside begging me to have them for lunch! yumI consider an indicator to be a package that has applied some transformation or function to the raw price data (not just aggregating it or displaying it visually) and displayed the output somehow. RSI, MACD etc. Most of the time price formations can give me the same information that these indicators are giving me, but not quite as lagged. I don't have any beef with these sorts of indicators. I do snap them on somtimes, but they play second fiddle (they are a secondary tool) to price action.
I agree completely that understanding the calculations used in these indicators (RSI, MACD etc.) enhances your ability to use them successfully, which is part of the reason I don't use them as I have not taken the time to study many of them in depth.
Cheers,
Linc.