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just one more,
are they lagging, or are they helping one to tell you that the direction
has now changed, and if the prices are going up, well you might want to be a
buyer.
SURE, they are not for bottom picking, one is not buying if the prices are
going down, in hope that it will stop at some fib-support,etc, then come
back,, it wont tell you how far the price will move,(nothing will, )
its all speculation on past performance and ones own interpretations
from ones own experiences in the markets, but they will tell
you when the prices have changed direction, as confirm by price itself,,( so
if one is quick, as one must be in daytrading,) and you have
tested and are comfortable with this style, it is as valid a way as the next
( in my opinion).
and now, as Bill has pointed out, it is not as effective in the Bonds,
as ,( for the most part,) the daily range just ain't there., but in the
S&P,and mini, they can work fine.
so in conclusion, one just needs to find a way that
one is comfortable with and then master it.
I will stop there, goodtrading / Ted
> > I know Bill says indicators are BS -- particularly those that
> > attempt to "predict" market conditions.
>
> Not so Clyde!
>
> While I may think they are useless for day trading, I have always said
that
> they may have their place or value for position trading. Clearly, if you
> are not going to be in front of your computer most of the time, you want
to
> get whatever warning you can and I am sure there are indicators which will
> help. I am sure that a cross-over moving average type of indicator or
your
> own swing machine will help the position trader.
>
> But when it comes to day trading the bonds, you are in front of the
machine
> and your eye watching the price action is the fastest, most accurate means
> of know what's going on. My chart yesterday showed exactly what I mean.
> You can see the wedge build, you do not need and indicator to tell you it
is
> building; furthermore, by watching it tick away you can get a feel for
the
> momentum, which no indicator is going to give you the message any sooner.
> Waiting for the ADX or RSI or MACD or, or, or, will more than likely cost
> you dearly. At best, waiting for it to cross the line (and maybe back
> again in a trice!), will probably ruin your risk to reward on the trade
and
> at worst put you into the trade just when you ought to be coming out of
it!
>
> But I am talking day trading. Day trading the bonds. Reading the tape.
> Using a total method of trading, with various checks and balances to help
> you take out more than you lose. As I said, if an indicator could do it
for
> me, I would use it. The reason I have 112, I think it is, in my Analysis
> Techniques box, is because I am willing to look at them, but then have to
> discard them as useless - sometimes even dangerous.
>
> But I would not be so foolish as to say all indicators are BS, as you put
> it. Position traders use them all the time (they certainly can't use
> intraday price action, now can they?) but it is quite the reverse for day
> traders - well that is my experience on the bonds and I know there are a
lot
> of people on this very list that can vouch for that!
>
> Anyway, let's move on...
>
>
> Bill Eykyn
> www.t-bondtrader.com
> "Learn to read the tape"
>
>
> >
>
>
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