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>To a daytrader, this means that the indicator "biases" trade direction
>for the following day.
Anyone who allows him or her self to be "biased" by an indicator before the
market opens is naive. Anyone who propounds such a proposition for profit
is knave.
Successful day trading (non mechanical, obviously) relies on reacting to
what the market is doing, not on what an indicator says it ought to be
doing. Yesterday, the indicators were completely wrong. Today, we had the
following:
"Our cycle indicators are telling us that we're due for a drop."
"...this is no strongly trending market. This is a drifter."
"...a 10 day average reading of Trin less than .80 is a pretty good lock
that the next day is going to be down. Yesterday's 10 day average of Trin
came in at .79"
We have not only had a lovely up day (worth a $1,000 per contract), but
this is now the fourth day in a row with the market making a higher highs
and lower lows.
Such a scenario is usually described by most traders as a trend.
Furthermore, you do not need an indicator or a moving average or anything
else to see that. You only have to look at the chart
This is the second day in a row ... What will tomorrow's prediction be?
I am sorry, but there are a lot of people out there who would dearly like
to become good at day trading. They would like to earn their living out
of it. Most have a small amount of capital. Most have been caught by
purveyors of other fax lists, hot lines, seminars and the rest and here,
now, on RT we have someone unleashing yet another - and not even based on
his own work.
Well, as someone who has been through mill, I am just not prepared to let
it go without pleading for readers on this list to be highly suspicious
about the relevance of indicators and a 'service' based on them (even if
they are lifted from someone else's book, so it is someone else's fault, if
they don't work).
I have had excellent private mail over this, now let's have some public
stuff. We cannot afford to let a subject like this just die, so that the
names of all those garnered off this list will be subjected to a service
that will not actually be any service to them at all.
The whole idea of RT, surely, is to thrash out subjects, so that value can
come through and members benefit. There is hardly a more important subject
to a day trader than the reliability or otherwise of indicators - let alone
a fax service based on them.
If I am wrong, tell me. It is not a private grievance "best left
undiscussed in a serious public forum". It should be a vital topic to a
lot traders - certainly to all those who are about to sign up. Or has the
whole thing just been flying a kite - if so, I hope it has been torn to
shreds?!
Bill Eykyn
www.dbceuro.com/bille.htm
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