HomeHome  RegisterRegister  Log in  

Share | 
 

 Which indicators to use?

Go down 
Go to page : 1, 2  Next
AuthorMessage
Guest
Guest



PostSubject: Which indicators to use?   Fri Sep 05, 2008 6:56 pm

I'm fairly new to trading and have been reading a lot about the different indicators out there. There's enough to make my head spin, to make it easier - what is it that all of you use when you're browsing through stocks?? confused

Thanks in advanced!
Back to top Go down
aiki14

avatar

Posts : 10
Join date : 2008-09-06

PostSubject: Re: Which indicators to use?   Sun Sep 07, 2008 2:19 pm

I use different indicators and data for screening stocks than for trading, but if I understand your question it refers to screening for stocks that are set up for good trading.

I look for moves through resistance or support levels, usually 10,50,89, and 200 SMA's. Pretty simple actually. Then I may refine my selection using Slow Stochastics, ADX D+ D-, OBV, absolute volume, and absolute volume versus a 10 or 50 period moving avg.
Back to top Go down
View user profile
aiki14

avatar

Posts : 10
Join date : 2008-09-06

PostSubject: Re: Which indicators to use?   Sun Sep 07, 2008 2:19 pm

I use different indicators and data for screening stocks than for trading, but if I understand your question it refers to screening for stocks that are set up for good trading.

I look for moves through resistance or support levels, usually 10,50,89, and 200 SMA's. Pretty simple actually. Then I may refine my selection using Slow Stochastics, ADX D+ D-, OBV, absolute volume, and absolute volume versus a 10 or 50 period moving avg.
Back to top Go down
View user profile
Riddicks

avatar

Posts : 10
Join date : 2008-09-06

PostSubject: Re: Which indicators to use?   Mon Sep 08, 2008 2:01 am

Thank you Aiki.
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Mon Sep 08, 2008 8:48 pm

usually when i scan the market i have various methods but based on personal preference, i like using indicators such as RSI and CCI when scanning. it makes everything easier to sort through
Back to top Go down
Guest
Guest



PostSubject: Re: Which indicators to use?   Fri Oct 31, 2008 9:55 pm

Gut feeling. If looking at a stock makes me want to pee I short it. If it makes me horny then I go long.
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Price and Trend   Wed Nov 05, 2008 10:45 pm

Price and trend are the best indicators that one can use. All others are lagging and can only obscure the truth. farao
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Wed Nov 05, 2008 10:55 pm

trends lag too

have to look to leading indicators like rsi and money flow
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: RSI & Money Flow   Thu Nov 06, 2008 12:07 am

TAman, You will have to explain how either relative strength or Money Flow can possibly lead price???

Relative Strength is a gauge of how price is doing compared to a benchmark industry, Index, or sector. if you are refering to Wilders RSI then how can an indicator that uses smoothing actualy lead price?

Money flow has to do with volume and in some cases volume can lead price but not in all cases, so with that in mind one should not be gambling. That is why we go to Vegas. (well that and to get away from our wifes) rabbit
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Fri Nov 14, 2008 12:48 am

leading indicators tell you which way price is expected to move based on trading ranges

lagging indicators are trend following indicators because they tell you what price has been doing

the most important aspect is deciphering whether youre in a trending or trading market
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Reply   Sun Nov 16, 2008 10:12 am

Ah, the magic word "expectected" Basketball Now if you want want to beat the Markets then you will need to bring a better game than that my friend. Do not mistake my words; I think that trend indicators are just as useless as RSI. No

The Trend however is where it is at until it is not. Arrow

Take a look at XOM on a daily chart so that you can see from 2006 to now, then draw a trendline conecting all the lows during the mid 2006 to January 2008 rally. You can see in January that the trend was breached and a sell at that time would have put a big chunk of change in the pockets of those that were patient and have an understanding of trend. Now plot an RSI indicator on the same chart. What would that have been telling you durring this great trend rally????
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Mon Nov 17, 2008 12:24 am

using simply RSI... here are my results...

using my own settings on RSI, my buy points are here...



if I used the standard RSI settings, here are my buy points...

Back to top Go down
Guest
Guest



PostSubject: Re: Which indicators to use?   Mon Nov 17, 2008 12:40 am

and here are results which are very good if you followed a simple 10/20SMA crossover..

Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Reply   Mon Nov 17, 2008 3:43 am

Well my Technical friend I guess that your charts illustrate our difference in philosophy. study You try and time the market; way to much work and risk for my taste. scratch

I must admit that during these Bear conditions I am not finding the opportunities but I am a man of statistics. It is better to play on ones home court. I would much rather wait for the fruit to be ripe and fill my basket, then when it is cold outside I can nibble on my acorns and still be content. Those that think they can use indicators to time the market very rarely make it to their first million. Take it from one who has already tried it. My fortune was made once I through all my indicators away.
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Mon Nov 24, 2008 6:42 pm

Indicators are good for judging when a market event MIGHT happen. It's like a traffic light. You know when you can most likely cross the street the safest but you still look both ways just to be sure. An indicator is just that but you look at other things to see if your entry is most likely to be profitable. This is better than jumping in blindly. I used to be a nervous trader but now I'm more relaxed because of indicators. Don't use too many. Find what works for you.

Now a traffic light tells you it's clear. You look both ways and sure enough, it's all clear so you cross. Oops, a plane, a piano, or bubble gum hits you from above. The same with the markets. It can throw you a curve ball at any time.

While indicators are lagging they do have predictive abilities. Ones we see often are the overbought and oversold levels. The MACD has wonderful predictive properties. The market has a beat and so do individual stocks. Sometimes you have to play with the indicators.

pirat
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Indicators   Tue Nov 25, 2008 8:40 am

Fastpaw, you seem a little more open to discussion than previous attempts from others on this thread. You are correct; Indicators are useful when you are scanning or sorting a large list of stocks for given conditional criteria. But believe me when I say that there is no such thing as over-bought or over-sold.

Indicators such as Stochastic, CCI or MACD tell you when price is entering the top or bottom average range for the indicators setting, that is all. The stock itself is not aware of this condition and will do what it is going to do regardless. Looking back on price action of a given stock and then matching an indicator that will appear to have given timely entry and exits is meaningless. Are you now willing to put your money on the line just because Stochastic crosses over the 30 mark? The last three times that it did price went on to great gains. Oh you can put your stops in and feel good about your success but what if that piece of gum hits you from above and the stock gaps down rendering your stop inoperable, and then you panic and sell for a loss.

Imagine instead you do this. Wait for the Market to be trending (in the direction that best fits your trading style), find the strongest (or weakest sectors if you short the market) Look for quality stocks with great institutional support and look for price to be breaking from a trading range or draw trend lines and wait for price to move above them; of course you want to reverse all that for shorting.

Look at the indexes from August 2006 to October 2007 The Markets were all trending very strong and I made a killing just using trend lines. For fun I played some short term plays but the bulk of my profits during this Market rally came from Position trading. Since I am a perma-Bull I am not doing a lot of trading right now (this is not my comfort zone). I can wait for the next rally.

I just thought that I would share some ideas that have worked for me many years now. Of course we all have our own destiny. Good luck with yours. TAman, Fastpaw....
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Wed Nov 26, 2008 2:23 am

I am mostly a day trader and charts and indicators are my bread and butter. I put my money many times based on the stochastics, moving average crossovers, macd, and other things. So why do these work?

Let's go back to the traffic light. A traffic light only works if people obey it. Red is for stop, green for go, and orange means get ready to stop (or accelerate for some). These lights work because everyone agrees on how they should work.

Now back to charts. Charts are a self fullfilling prophecy. As we get more and more chartists then the signals from these indicators become more useful. Much like traffic lights.

Now patterns don't always work so this is where a stop-loss comes in. Also be smart and not hold anything overnight in a crazy market. Buy bear ETFs in bear markets if you want to hold. Fundamentals don't always work either especially when the news hits. Look at how many fundamentally sound companies are currently trading below book value. Some a trading below their cash per share. Often I use a combination of fundamentals and technicals for trading. But for day trading, being able to read the technicals is a must and timing is everything. And you can't time things without indicators.
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Curious   Wed Nov 26, 2008 9:01 am

How are you today Fastpaw? Do you mind if I ask how long you have been trading for and the size of your trading portfolio? Finally your realized gains (Ball Park figure “Annual”). If this is all too personal then I will respect your decision to keep these details private.

I only ask because I too once Day traded and still do at times with fair success. I found it to tedious and time consuming. I also like to use analogies to visualize trading concepts and the best example I like to share is that of farming. -

The growing season can be referred to as the market environment that you are most comfortable trading. Let us say for this example that I am a Bull farmer and only like to trade on the long side. So my growing season would be during a strong Bull Market. I took great advantage of the last Bull Market from 2003 through 2007. I unlike others loved it when the markets fell into a correction; why? Because most corrections will last a few months and then I am like a kid in a candy store, I have seen corrections come and go for many years and I know that it is during the recovery stages that the bargains are to be found (using a good charting software program).

Position trading is the most profitable for me during these fertile conditions. I fill my baskets full. I know that like all parties the day will come when the party is over and the Bears move in to stake their claims. It is during these times that I will invest elsewhere. Safe parking low yield.

This is how I have built up wealth over the Decades. In the early days I paid a price for my education like everyone else, I was no different. I even used indicators heavily at times; almost to a science.

I say all this because after trading for many years of trials and discovery it is my opinion that the most efficient method of trading is the longer term approach. In the same vain that I have discussed here in this thread. That is why I ask how long that you have been trading; so as to get an idea of your experience level. I am glad that you are currently finding success in the murky markets, and I wish you continued success.
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Wed Nov 26, 2008 12:57 pm

I'm doing good today but I have to leave early so I can't trade the entire day. And how are you?

I'm a small meat and potatoes right now. I started active trading about 6 months ago (not day trading). Then 4 months ago I started day trading. Let's just say my initial experience left a lot to be desired. But things got better. I had some success and lots of losses. But starting last week things started to turn around. This week has been beautiful. Of course we've had a bull run but I have made most of my cash trading the bear ETFs. Best day was last Thursday.

I do find day trading to be time consuming but I also find it to be fun. It has also taught me a lot of things about the markets. But I don't want to be a day trader forever. I know it's easier to make money being a position trader but this is not the environment for it. I also have plans to get a degree so I can learn about the different financial instruments. Yes I can learn these on my own but it would be nice to not have to stumble across information piecemeal.

Some day I, too, hope to plant my crops and harvest during the next bull season. I've taken some positions but quickly sold them when the profits came. Some day I'll be able to relax but for now I must toil the fields.
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Response   Fri Nov 28, 2008 11:35 pm

Fastpaw, your story sounds familiar. Do you post on other trading forums? I guess being fairly new to trading then you need to find out what works for you and what does not. It is hard to just take the word of others.
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Sun Nov 30, 2008 4:45 pm

I post in one other board but I doubt I've ever posted my history there.

Finding what works varies and it usually happens after you've lost some money.
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Other forums   Sun Nov 30, 2008 4:59 pm

Is it free tading videos or the Worden website? if not wich one? The responses here come to slow. Do not get me wrong I love WSE..
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: Which indicators to use?   Sun Nov 30, 2008 8:28 pm

I used to post in FTV but I haven't been there in a long time. I mostly post here and OTF and most of those posts ramble.
Back to top Go down
Bulldog

avatar

Posts : 16
Join date : 2008-11-05

PostSubject: Forum   Sun Nov 30, 2008 11:30 pm

I post on FTV as Apsll, what was and is your handle over their? what is OTF? You should check out FTV again. WSE and I are regulars over there.
Back to top Go down
View user profile
survivor



Posts : 12
Join date : 2009-01-16

PostSubject: Re: Which indicators to use?   Sun Jan 18, 2009 7:10 am

Aiki14 likes to perform insider trading... lots of evidence going back over 8 years saved, printed, and duplicated. Do not trust.
Back to top Go down
View user profile
Sponsored content




PostSubject: Re: Which indicators to use?   

Back to top Go down
 
Which indicators to use?
Back to top 
Page 1 of 2Go to page : 1, 2  Next
 Similar topics
-
» What are the good Indicators to use before Buying shares..?
» Rahul Mohindar Oscillator (RMO)
» The list of most attractive shares in CSE
» People cashing in on the smallest profits and here goes the ASI down down down!!
» Indicator Systems For AMIBROKER : (3) -- Aroon Indicator

Permissions in this forum:You cannot reply to topics in this forum
 :: TRADING & INVESTING :: Beginner's Guide-
Jump to: