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AS>...My personal experience on using indicators..
That is what they are: INDICATORS. As I have expressed before: the only
real things are price and volume.
Al Taglavore
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> From: Alexandros Spiroglou <a_spiroglou@xxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Question on using Indicators
> Date: Monday, February 19, 2001 1:20 PM
>
> Dear Listmembers
>
>
> I would appreciate any comment on the following:
>
> "Oscillator signals are often cast in the role of secondary indicators,
or market
> alerts: they warn of potential price developments. Price based signals
like breakouts,
> moving average crossovers , chart patterns function as the actual trade
triggers.
> This kind of discretionary integration of oscillator signals is likely to
be more
> useful for most traders than independent, systematic applications.
>
> However this raises the question of the added value of the oscillator in
such situations:
> because the price-based trade signals would occur regardless of the
activity of the
> oscillator"
>
> My personal experience on using indicators (RSI, MACD,ADX, etc)is to
"consult" these,
> when price is on a support or resistance level - to see any bullish or
bearish features-
> and act upon price action. But as previously mentioned since price action
is the
> main reason for entering a trade, what is the point of doing momentum
analysis at
> all?
>
> Recently I was observing a stock consolidate on a support level -and have
a positive
> RSI divergence-
> however a few days after, momentum fell, and the RSI trendline was
broken, and the
> stock broke support.
> I shorted the stock with a 5% stop-loss just above support (now
resistance)levels.
> Since my trade was based on price action, observing indicator behavior,
proved pointless.Even
> if the stock had indeed exhibited "textbook" behaviour and broke on the
upside,
> I would have simply bought it , but still the RSI would have given me no
"value"
> since my main entry-trigger would have been price action and not the
indicator pattern/value
> etc.
>
> Any comments/recommendations would be highly appreciated.
>
> Kindest regards
> Alex Spiroglou
>
>
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