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Hi Dejan et al
Had thought we had more or less killed this thread! Anyway, this is my last
on the subject, before as someone said 'we move on'!!
We all seem to agree that most indicators lag, that some are at best even
(if crumpled potatoes!), but none are ahead of price.
We all seem to agree that price is paramount.
Therefore...
If you are position trading and can withstand the drawdowns that some, if
not most, indicators would make you have, en route to a result, fine. In
other words, you have to have the stomach for them. Possibly like accepting
the drawdowns of a mechanical system? But I don't want to start an argument
on that!
If you are day trading, the price by definition is doing the indicating, as
you are watching. It is leading and you may well be lagging! But, the
price action and the price patterns are talking to you and, depending on
where the market is at that precise moment (whereby hangs a tale...), is
telling what it is likely to do next. If you like, price action is simply
the best indicator around. You don't need anything else - and if there
isn't anything else, that's it. QED.
As I constantly hear lawyers say in court, "That's the case for the
defence..."
Bill Eykyn
>Some of the markets have a strong cyclical behaviour. If one sets the
>length of the momentum to half of the wave lenght of the market he would
>get an indicator which does not lag the market.
>
>Only issue is that this waves are somewhat crumpled and look more like
>potatoes than like sinusoide. But trading is not a science ...
>
>Otherwise, I completelly agree that the ultimate indicator is the price
>itself (it never lags).
>
>Regards
>Dejan
>
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