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Gold/Mining/Energy : Copper Fox

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dsikorsk

To: mahzman2 who wrote (10229)	5/21/2016 3:50:49 PM
From: louel	1 Recommendation of 10654

Indicators from my prospective should be used as such "indicators" They do not forecast but rather indicate a weighted forward outcome based on previous action. They are used to confirm price action because most are derived from the precious price action. When an indicator is divergent from price it is usually a early warning that price will soon follow in the same direction. Example Chart Below: Notice MACD 20/50 began to narrow the distance between it's 9 day Ma. in Jan 2015 when price was still dropping around $3.25, Then crossed up thru its 9 day Ma in Feb. while still up at $2.70. Price kept dropping all the way down to $1.08 in Feb 2016 but MACD maintained its rise because institutions were slowly buying up the falling leaves. Each time the retail crowd would jump in pushing price up, big curtailed purchases dropping price again. Their actions were not hidden from the MACD indicator. The nice thing about this software I use is there is 83 different useable indicators which are tweakible. Of course no one uses them all. But most any indicator a person likes can be accessed. Also it provides the ability to create your own if a person chooses to do so. I have one I created (((C-O50)*100))/9 which is very close to MACD 20/50, but eliminates some of the false starts. It is the average of the closing price minus the open over the last 50 days. Then it compares the action of what is taking place in the last 8 days as compared previously. IE: has the average closing price been higher or lower. That suggests if strength is from buyers or sellers. I could go into some other indicators but this is long enough for now. Martha Explains some of the ups and downs of indicators as she talks about Bollinger bands. Click the free lesson on the right. technitrader.com

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