31 replies to this topic

[OEXCHAOS]

I think one of the better indicators is a weekly MACD. Don't wait for a cross over the signal line, but rather just an upturn. 13 21 8. That's usually good for a 2+ week move in the direction of the turn. Of course, I really like my Rydex Speculation Oscillator (RSO), that and any daily MACD or useful MA are likely to get you in or out for the majority of a move. Mark

[macavity]

There is very little difference between 'numerical' indicators. 2 categories Leading: ROC/RSI/Stoch/MACD-Histo etc Lagging: EMA/MACD If you look across multiple timeframes you soon see that Leading indicators in a higher timeframe look similar to lagging indicators in lower timeframes. I would suggest you experiment with your timeframe. Find the one you like with 2-3 indicators, and then keep an eye on the same period indicators in the one higher and one lower timeframe. This will give you good insights on your timeframe. -macavity

[traderpaul]

McCavity, Please explain to me why MCAD hist is a leading indicator and MCAD is a lagging indicator. It is my understanding MACD Hist is an other way of expressing MACD.

[mini-trader]

McCavity, Please explain to me why MCAD hist is a leading indicator and MCAD is a lagging indicator. It is my understanding MACD Hist is an other way of expressing MACD.

<{POST_SNAPBACK}>

The histogram is derived from the difference between the MACD and the signal line. They are both lagging. It is still a great indicator for weekly charts.

The ADX, DMI is still the best all around indicator for all time frames including intraday. You get strength of buying / selling AND strength of trend. Stochastic momentum would be a close second.

[mini-trader]

Anyone that likes using MACD should do some reading on Alvim Alpha MACD. It shows how easy it is to tell when the huge moves are setting up from histogram formations.

[Mr Dev]

I would like to post my thoughts since we already know what indicators I like, hehe.


My thoughts are there are many good indicators although nothing is 100%,, but when you

find one that speaks to you ,,Take the Dang Signals Every time..this so that you can

benefit from the 80/20 rule. If you do Not take All the GOOD signals ie.. Hook at

extremes or3/6 cross or crossing the zero line..or what ever your sigs are ...

you reduce your win rate to a more average ratio. Hesitatioin also leave you much

less room for mistakes... in money mgmt for exampel or even timely exits.

Many things work well.. try using only 1 or 2 that speak to you and get to know them well.

Then leave the noise behind if they the signals dont work and you're wrong then your'e out and

looking for the next signal.

Traders are always looking for the next likely set up to their indicators...you can

only do this if you know what your indicator is currently doing, and if it is above or

below sup/res and or at extremes ....

I feel like you need an Indicator that gives you this type of character to trade well with it.

IF you would like to share a week or two going over my favorite daytrading

indicator that does exactly this you are welcome to join me and

many other traders in a free rooom. Just Pm me.

I probably had 22 trades today 2-3 sml loosers 1 breakeven and 18-20 wins for more than +10 points on the Rut-ER2 today.

I couldn't do that without a trending indicator that also has sup / res and extremes that are easy to read.

best

[dollarbear]

thats a good point Mr. Dev. appreciate your response and all the responses... I tend not to be any good at daytrading... but rather trades that avg a week to a month... not sure why...but thats the timeframe i've had more success and comfort in.my 3 indicators that have helped me avoid problems and make some money while the media did the opposite have been 1) keeping a eye on bond spreads as a indicator of interest or lack thereof in corp profit growth... when i say bond spreads i mean high yield over treasuries, moody's baa/Aaa , moody's Baa/treasuries... its very difficult though to get data on the high yield indices unless one has access to a bloomberg terminal so its not always available... having spent a modest amount of time on a bond desk at one point and being acquainted with some folks who ran bond desk I always foudn the took a far more sober view of the pricing of corporate paper and the future cash flow probabilities of a company than did equity folks... not that they are smarter... just their focus is different.. 2) weekly MACD... doesnt give too many fakeouts .... 3) daily stochastic using a slower period ... again thanks for the responses i like some of the ideas ... will check em out.. if i make any serious money with em i'll buy yall some bordeaux : )

[hiker]

Guru Dudette or Mark, Would you please consider moving this thread to the Investor's University board for the future benefit of many? Thanks....

[vitaminm]

Hi Db,

Take a look which indicator is more profitable.

http://quote.barchar...nce.asp?sym=QQQ

[Mr Dev]

Thanks for a Link vita, Something wrong in China Town with that Scan of Indicators tho!! Not sure what it is yet but certain Longer Term Trending indicators are trading within a week, and although I know there are various exits and entries for different styles of trading a simple zeroline cross would be MOst Unlikely in 7days for long term trending indicators for most indicies. I'll try and look again later after I get some rest.