Thanks, however I'm afraid I am light years behind in my reading. Even were I still a voracious reader I still have trouble reading for long periods due to the operation and I still have a second operation coming up.
Anyway, one thing I'm driving at is the necessity for more than just a couple/three indicators. Of course, mine would be different than most because I operate on a very fast time frame. I had a trade on for 4 minutes yesterday.
Even so, certainly the Position Trader would benefit from having several tested indicators. By a quick count, I enter/exit using a consensus snap analysis of over 9 Indicators. On any given trade I might discard one or add another. You mentioned RSI, I have it on two charts (with my own settings) but it only has validity for me at certain ranges. If the RSI on the SPxx is higher than 32 on a 5 minute chart for example it's a non-issue. Lower and it's a warning Flag. That's not going to help a Position Player. However I think any trader needs to base Entries and Exits on several pieces of Information.
So I track the A/D as well. Whether the NYSE is right or wrong, whether the Number is Positive or Negative is irrelevant I think. I think what is relevant is Trend.
Here's a thought, you have data going back a year. For laughs last Winter I aggregated all the data and created a Perpetual A/D ... obviously not Perpetual in the sense that the data starts last summer but I never drop anything off. The data goes on, adding each day to the total.
Now chart that. I have it on Excel and linked it to a Chart. It's peak was early November and it's nadir was a week or so ago. If you looked at that for trend the first reaction you might have would be to wonder aloud how the market could possibly be advancing. On the other hand, your second thought might be that it cannot possibly get any worse.
But as I say, if you just traded off that you would not have been Long in months. It's really quite interesting to compare it to the 25 day, as the 25 day has been inching up in steps for awhile. Meanwhile, the Perpetual (using my data, only since the summer) peaked at just over Positive 6000 in November and is now almost Negative 10,000.
Well good luck, as it should be an interesting day. |
