 Best indicators to guess tops/bottoms; determine overbought/oversold areas, Too many indicators to choose! Any ideas? |
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  Mar 11 2006, 02:12 PM
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#1
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Member Group: Traders-Talk User Posts: 5 Joined: 10-March 06 Member No.: 4760  |
Best indicators to guess tops/bottoms; determine overbought/oversold areas
Hi. I need something to to guess tops/bottoms; determine overbought/oversold areas I realise there're many indicators available to do the tasks I want. But I just don't know which one I should use. There's just too many. I don't know how to make an informed choice. How about you? What do you use to do the tasks? And why? Thank you! 
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Mar 13 2006, 09:44 PM
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#2
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Member Group: Traders-Talk User Posts: 6034 Joined: 11-September 03 From: Silicon Valley, CA Member No.: 52 |
I think what you are looking for a perfect indicator that will make you a million bucks.....There ain't none.....If I have one, will I give it to you? Most of them will do an OK job.....But there are times the trend may go on and on and your indicator will stay overbrought and oversold for days.......Until you puke, and sold .....then there is the top or bottom that you were looking for......
-------------------- "Inflation is taking place now. Prices may not appear to be rising because they are making packaging smaller. "— Rickoshay
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 Mar 23 2006, 12:34 PM
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#3
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Member Group: Traders-Talk User Posts: 5 Joined: 10-March 06 Member No.: 4760 |
QUOTE (traderpaul @ Mar 14 2006, 10:44 AM)  I think what you are looking for a perfect indicator that will make you a million bucks.....There ain't none.....If I have one, will I give it to you? Most of them will do an OK job.....But there are times the trend may go on and on and your indicator will stay overbrought and oversold for days.......Until you puke, and sold .....then there is the top or bottom that you were looking for...... No, no indicator is perfect. What's more, you don't need a perfect indicator to make millions! My focus is for all the known formulas available in the public (I don't expect anyone will be so gernerous to give me his private formulas), which one(s) are the best to indicate possible bottms/tops? |
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Mar 23 2006, 12:45 PM
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#4
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 Member  Group: TT Member* Posts: 2126 Joined: 12-October 05 From: Colorado Member No.: 4282 |
Elliott wave theory, William...but it takes time and patience to fully understand its many complexities. I would start learning it and studying it and then give it 3 to 5 years of counting everyday before you begin to trust it.
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Mar 23 2006, 03:06 PM
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#5
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 Member Group: TT Member* Posts: 2049 Joined: 8-November 03 From: Middle age Member No.: 520 |
I agree on the Elliott Wave theory. I've messed with it since the early 1980s. A lot of how I use it is known as other things, i.e. "pennants" and "flags" and "wedges" etc., right out of Edwards and Magee or other basic market pattern information.
If I see a "diagonal triangle" in EW terms, it's often a "declining" or "rising" wedge and when it completes the odds are higher for a market refersal and often a fast move the other way. Continuation patterns and reversal patterns are pretty much universal, IMO. A sideways triangle after a trend is probably going to be followed by at least one more move in that trend. Overall I'd first look for a prevailing trend. If it's up, for example, then bullish shorter-term moving averges crossing over longer-term ones is good to have on your side too (presuming you want to buy). Add in breadth indicators and if they're positive then that's plenty for me. Doug |
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 Mar 23 2006, 04:49 PM
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#6
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 Member Group: Traders-Talk User Posts: 6692 Joined: 9-December 03 Member No.: 681 |
QUOTE (WmWaster ^-^ @ Mar 11 2006, 02:12 PM) Best indicators to guess tops/bottoms; determine overbought/oversold areas Hi. I need something to to guess tops/bottoms; determine overbought/oversold areas I realise there're many indicators available to do the tasks I want. But I just don't know which one I should use. There's just too many. I don't know how to make an informed choice. How about you? What do you use to do the tasks? And why? Thank you! Try this simple paper trading system./Parabolic buy(green dot) Sell(red dot)/ Buy when Stock price>5 day simple moving average http://www.traders-talk.com/mb2/index.php?showtopic=49671 -------------------- vitaminm
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Mar 23 2006, 05:11 PM
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#7
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Member Group: Traders-Talk User Posts: 6692 Joined: 9-December 03 Member No.: 681 |
[quote name='vitaminm' date='Mar 23 2006, 04:49 PM' post='202449']
[quote name='WmWaster ^-^' post='199981' date='Mar 11 2006, 02:12 PM'] Best indicators to guess tops/bottoms; determine overbought/oversold areas Hi. I need something to to guess tops/bottoms; determine overbought/oversold areas I realise there're many indicators available to do the tasks I want. But I just don't know which one I should use. There's just too many. I don't know how to make an informed choice. How about you? What do you use to do the tasks? And why? Thank you! [/quote] Try this simple paper trading system./Parabolic buy(green dot) Sell(red dot)/ Buy when Stock price>5 day simple moving average DIA http://finance.yahoo.com/q/ta?s=DIA&t=3m&l...12-9,w14,r14&c= [quote name='vitaminm' date='Mar 23 2006, 04:49 PM' post='202449'] [quote name='WmWaster ^-^' post='199981' date='Mar 11 2006, 02:12 PM'] Best indicators to guess tops/bottoms; determine overbought/oversold areas Hi. I need something to to guess tops/bottoms; determine overbought/oversold areas I realise there're many indicators available to do the tasks I want. But I just don't know which one I should use. There's just too many. I don't know how to make an informed choice. How about you? What do you use to do the tasks? And why? Thank you! [/quote] see next reply -------------------- vitaminm
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 Mar 23 2006, 05:24 PM
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#8
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Member Group: Traders-Talk User Posts: 6692 Joined: 9-December 03 Member No.: 681 |
QUOTE (vitaminm @ Mar 23 2006, 04:49 PM) QUOTE (WmWaster ^-^ @ Mar 11 2006, 02:12 PM) Best indicators to guess tops/bottoms; determine overbought/oversold areas Hi. I need something to to guess tops/bottoms; determine overbought/oversold areas I realise there're many indicators available to do the tasks I want. But I just don't know which one I should use. There's just too many. I don't know how to make an informed choice. How about you? What do you use to do the tasks? And why? Thank you! Try this simple paper trading system./Parabolic buy(green dot) Sell(red dot)/ Buy when Stock price>5 day simple moving average http://www.traders-talk.com/mb2/index.php?showtopic=49671 Please ignore this link -------------------- vitaminm
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