I am currently using xtick for charting .
With xtick they have a function called painting where you can set up alerts on different indicators.
I did a simple test on rsi and stockastics (overbought and oversold alerts) and found that when price reached the oversold/overbought levels the results were as random as a coin toss.
In fact it was plain dangerous to put any faith in these signals at all because the price was just as apt to continue in the initial direction as to reverse.
REALLY IT WAS 50/50
This showed me that these indicators are less than usefull, because as I mentioned they could be downright dangerous
I have no idea why people would place any faith at all in overbought and oversold indicators after that experience.
Anyone can see this in a minute with XTICK or MT4 so what am I missing here....
Could anyone explain to me why people use these indicators ????
With xtick they have a function called painting where you can set up alerts on different indicators.
I did a simple test on rsi and stockastics (overbought and oversold alerts) and found that when price reached the oversold/overbought levels the results were as random as a coin toss.
In fact it was plain dangerous to put any faith in these signals at all because the price was just as apt to continue in the initial direction as to reverse.
REALLY IT WAS 50/50
This showed me that these indicators are less than usefull, because as I mentioned they could be downright dangerous
I have no idea why people would place any faith at all in overbought and oversold indicators after that experience.
Anyone can see this in a minute with XTICK or MT4 so what am I missing here....
Could anyone explain to me why people use these indicators ????