All,
This post is to stir up the creative juices, massage the gray matter and jump start an anemic bb. The purpose of this post is not to convert nor is it to defend one's beliefs but to explore and share ideas tossed for disscussion.
Stocks can only go up, down or sideways. Any change in direction has to cross a trendline, moving average or levels of support or resistance.
Simple indicators such as volume, stochastics, fib retracements etc may give us confidence when entering or exiting from a bounce off of support/trendline/moving average.
In my opinion, I would spend a great deal of time learning to draw channels, placing trendlines and experimenting with moving averages OVER the writing of indicators and systems 3 pages long.
This is coming to you from a guy that turned on Dave, Chan and many others to the writing of binaries and the like.
Richard in his infinite wisdom always warned of making these indicators redudant by adding too many like indicators to the mix.
He was right and I would further that notion by say no matter what you put in a custom indicator it will be redundant.
The only custom indicator I use is DNS and thats for screening. It serves me a wonderful purpose but ultimately S&R is king. If I see a line being broken, that speaks volumes.
In closing, I hope that I have verbalized my feelings coherently. In escence what I'm saying is that 90% of TA is S&R, trendlines and moving averages. All other tools are confirming and the givers of confidence. What I did previously was the opposite, giving much more of my time to the indicators and not really knowing where the 'crowd' was. I also now believe that psychology is 90% of trading, although you need TA as the decoder ring to find where and how the psychology is.
Regards,
Jerry |
