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JD>That statement doesn't tell me anything concrete.
What is ambiguous? When you download your EOD data tomorrow, what will you
get besides price and volume? This is what I have referenced as the only
real things. Or, if you prefer, the only "concrete" information that will
come on your data feed.
JD>It implies though that you think indicators have no value?
No, I do not wish to imply that indicators have no value. My perspective
is that indicators are just what the name implies: Indicators. I can only
view them as ways of massaging price and/or volume. To trade off of the
indicator could surely be hazard to ones wealth. The indicator may suggest
a movement, but it will be price that confirms the movement.
Larry Williams once said that data was like a hostage....if you squeeze it,
it will tell you anything that you want to hear.
Al Taglavore
> From: Joe Duffy <joeduffy@xxxxxxxxxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Question on using Indicators
> Date: Monday, February 19, 2001 7:55 PM
>
> That statement doesn't tell me anything concrete. It implies though that
you
> think indicators have no value?
>
>
> ----- Original Message -----
> From: Al Taglavore <altag@xxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Monday, February 19, 2001 4:56 PM
> Subject: Re: Question on using Indicators
>
>
> > 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
> >
> >
> > ----------
> > > 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
> > >
> > >
> > > Find the best deals on the web at AltaVista Shopping!
> > > http://www.shopping.altavista.com
> >
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