Often, when I see indicator speak, it brings out the worst in me. -g
I could refute each of your points, but it likely wouldn't make for a worthwhile discussion. It is worth reminding everyone that indicators and funky math are always secondary to price and pattern, support and resistance. To put a fine point on it: a trader who trades patterns, support and resistance, has a huge edge over someone who trades indicators.
In general, indicators are nearly worthless in an range or sloping range that is long in the tooth. Chances are good that, eventually, we are going to bust out of it one way or the other.
This is what I dislike about this thread. There can be 20 posts discussing a bounce when, if you were to follow them closely, the participants are only talking about a small bounce or a bounce that is to setup a real opportunity -- a short.
How useful is that? We would do better to concentrate on the wider timeframes and the bigger opportunities. The most important question for the next week or two is this:
The index charts are drifting down in an overlapping mess. Generally, this is a bullish setup, the prototypical case being the falling wedge. If price falls down out of this pattern is is very bearish -- it's a Hound.
An example of such a Hound is the summer of 2001, and we all know what that lead to!
Cheers |
