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Johnny Storm wrote:
>
> My interpretation of the 2 Period ROC is only to tell you if you
> should carry a position overnight.
>
> JS
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My interpretation of the indicator's intent is that if it fires on any
particular day, those who are prone to holding overnight positions can
do so, with the expectation that the following day will trend in that
direction. But here again, it was never meant to be used in mechanical
fashion.
To a daytrader, this means that the indicator "biases" trade direction
for the following day. Note, I said "bias". I did NOT say that the
indicated direction is the only one you should trade. I use that
information to "tip the scale", but price behavior is always the
ultimate determining factor.
Bob Hunt
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