Registered User Joined: 2/19/2009 Posts: 28
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i am new to stockfinder wanted to know which indicators would be best to use in the beginnging...
i have basic investing skills how to read candles and some indicator knowledge...but i want to start off using two or three indicators with my Candle sticks,what indicators would work the best for reading the market?
Thanks
Craig
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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The trainers can't give setting, interpretation or investment advice. I'll move this topic to the Stock and Market Talk forum so other traders will be more likely to see it and comment.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 2/21/2007 Posts: 797
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CRAIG: scroll down to feb. 10 "Underperforming a coin flip" by scott. open that thread. then scroll down to feb. 24 @ 5:46 by golfman25 and read his response to scott's situation.
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Registered User Joined: 2/19/2009 Posts: 28
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QUOTE (johnlc) CRAIG: scroll down to feb. 10 " Underperforming a coin flip" by scott. open that thread. then scroll down to feb. 24 @ 5:46 by golfman25 and read his response to scott's situation.
Thanks John
wow is that true?? been watching some of the semminars on here trying to pick up some advice from them...they seem to be big on the indicators like the MS TSV MCD.so you dont think its good to use thease in conjunction with the charts? So do you just use a SMA on your charts and no volume indicators at all?what about Craig and Peters techniques? thanks for your help.
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Registered User Joined: 3/29/2005 Posts: 56
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I find that when using SMAs (or EMAs, or crossovers of same) I either get whipsawed and have too
many small gains or losses to bother trading the system, or penetration signals come too late to be profitable. Bollinger bands or envelopes would probably be better than moving averages by themselves.
But you need to have some idea of how your trading system worked historically, not that that is predictive, especially in this market environment. You also don't want to overfit your paramaters. HTH.
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Registered User Joined: 12/31/2005 Posts: 2,499
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QUOTE (craigieburns) what indicators would work the best for reading the market?
Thanks
Craig
Ask 20 Traders and get 30 different answers.
The best answer is "get to know something related to the situation that resonates with your thought process". The choices are infinite.
It could be:
o relative strength sector analysis and strength/weakness of the stock within the sector
o price volatility and any recent the change in it
o volume signals
o n day linear regression slope of the qqqq's or spy or ???
o linear regression slope divergence of price versus "pick something"
o Bollinger band pinch of "pick something"
o ADX > ?? or ADX < ??
o RSI > ?? or RSI < ??
o stochastics above ?? or below ?? or crossing ??
o backscan count of stocks successful trades over last 10 using said strategy
o count of failed candle stick pattern
o ??
o ??
o don't trade on even numbered Tuesdays
o ??
o ??
Use the backscanner to get a rough idea of what of any of the above, or anything else, seems to improve the backscan results.
Here is one approach:
Backtest with fixed short timeframe exit, as in an exit after n bars. Add just one additional criterion to your current approach and measure the improvment. Doing so, one at a time, gives an idea of what additional single criterion improves the success of your entry. Actual results will vary greatly when a non-fixed duration exit is used, making determination of the value of the added indicator more difficult.
Granted the exit is 70% of the trade's success, but adding indicators is not helping with the exit but only potentially improving the entry.
If your test enough of them, some will start to resonate with your approach and contribute to your confidence about the entry's potential.
Past performance is not guarantee of future success... blah blah blah...
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Registered User Joined: 2/21/2007 Posts: 797
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craig: i'm no expert at this. it seems like every book read, all the "experts" say keep it simple. if i've learned one thing, it's that whatever trading system you use or develope, IT MUST FIT YOUR PHSYCHOLOGICAL MAKEUP. because when your money is on the line, it's a whole new ballgame.
i do agree that bollinger bands are extremely helpful.
i think alot of people use stochastics, macd, tsv etc. in their scans for their next day or next weeks selections but then rely on price action and market direction the day of the trade.
go back in the worden reports and cherry pick some of the knights systems, some are nice and simple some are complicated.
david john hall had a nice envelope system. maybe if he reads this he can direct you to the thread.
most books say it's a 2 year learning curve.
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Registered User Joined: 12/31/2005 Posts: 2,499
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Weird, my reply got posted as the first entry.
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Registered User Joined: 2/19/2009 Posts: 28
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QUOTE (Craigieburns QUOTE= thanks this is very helpful! just trying to figure out a good plan here,i do agree that indicators are used for a good entry into the market...i believe its not a science but a art reading charts and indicators...with this said do we look more to charts, looking at the downward resistance lows(will they test the previous resistance lows) also bullish and bearish engulfing signs,,, and trends ??with past performance not being future success....could we use a previous trends to determin somewhat of the stocks direction??
Thanks
Craig[/QUOTE)
Ask 20 Traders and get 30 different answers.
The best answer is "get to know something related to the situation that resonates with your thought process". The choices are infinite.
It could be:
o relative strength sector analysis and strength/weakness of the stock within the sector
o price volatility and any recent the change in it
o volume signals
o n day linear regression slope of the qqqq's or spy or ???
o linear regression slope divergence of price versus "pick something"
o Bollinger band pinch of "pick something"
o ADX > ?? or ADX < ??
o RSI > ?? or RSI < ??
o stochastics above ?? or below ?? or crossing ??
o backscan count of stocks successful trades over last 10 using said strategy
o count of failed candle stick pattern
o ??
o ??
o don't trade on even numbered Tuesdays
o ??
o ??
Use the backscanner to get a rough idea of what of any of the above, or anything else, seems to improve the backscan results.
Here is one approach:
Backtest with fixed short timeframe exit, as in an exit after n bars. Add just one additional criterion to your current approach and measure the improvment. Doing so, one at a time, gives an idea of what additional single criterion improves the success of your entry. Actual results will vary greatly when a non-fixed duration exit is used, making determination of the value of the added indicator more difficult.
Granted the exit is 70% of the trade's success, but adding indicators is not helping with the exit but only potentially improving the entry.
If your test enough of them, some will start to resonate with your approach and contribute to your confidence about the entry's potential.
Past performance is not guarantee of future success... blah blah blah...
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Registered User Joined: 3/29/2005 Posts: 56
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QUOTE (Vyrd) I find that when using SMAs (or EMAs, or crossovers of same) I either get whipsawed and have too many small gains or losses to bother trading the system, or penetration signals come too late to be profitable
Clarification: My crossovers get whipsawed, SMA penetrations are too slow.
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Registered User Joined: 1/11/2009 Posts: 36
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I find the best indicators are TSV/Rate of Change together..........BOP/ Volume......... these are for accumulation in buying of stock and volume of stocks bought on the day, but volume it has to be at or above the moving average..........Bollingers is good and can be used for buy and sell signals......MCAD can be used as an indicator for buy and sell signals.....hope this helps
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Registered User Joined: 2/21/2007 Posts: 797
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wait for some bad news to come out of D.C. then short anything except the reverse funds.
take yesterday, alot of members thought it was a good chance for the market to bounce positive, it did, but i decided to be stupid and went short. by the end of the day i was down $1600 but my stops were not hit so i held on. by 10:30 today my positions went from neg. $1600 to plus 1300. i guess the PRES.'S speech didn't impress wall street. crazy times. that move had nothing to do with indicators, moving averages, linear regressions, support, resistance, just news, and a whole bunch of paranoid people trading on wall street.
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Registered User Joined: 2/19/2009 Posts: 28
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John thats exactly what i was thinking about last night ...wallstreet phycology!i guess with stops atleast you can protect your cash....their is now definate here when making a trade .do you ever trade options??QUOTE (johnlc) wait for some bad news to come out of D.C. then short anything except the reverse funds.
take yesterday, alot of members thought it was a good chance for the market to bounce positive, it did, but i decided to be stupid and went short. by the end of the day i was down $1600 but my stops were not hit so i held on. by 10:30 today my positions went from neg. $1600 to plus 1300. i guess the PRES.'S speech didn't impress wall street. crazy times. that move had nothing to do with indicators, moving averages, linear regressions, support, resistance, just news, and a whole bunch of paranoid people trading on wall street.
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Registered User Joined: 2/19/2009 Posts: 28
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how do you know what to set your indicators at for smothing etc ??i see sometimes they use 50 and 200 ma some people use 20 200...tsv seen it used at 15 day...or is it just up to your discression? QUOTE (bronxz)
I find the best indicators are TSV/Rate of Change together..........BOP/ Volume......... these are for accumulation in buying of stock and volume of stocks bought on the day, but volume it has to be at or above the moving average..........Bollingers is good and can be used for buy and sell signals......MCAD can be used as an indicator for buy and sell signals.....hope this helps
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Registered User Joined: 1/11/2009 Posts: 36
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Yes it's up to your discretion, however, looking through worden help notes you set it based upon your trading style, so 200 the person must trading long, additionally, TSV is an oscillator, which is calculated by comparing various time segments of both price and volume. TSV essentially measures the amount of money flowing in or out of a particular stock. The horizontal line in the middle, which extends across the entire length of the indicator window, represents the zero line. When TSV crosses up through the zero line it signals positive accumulation or buying pressure. This action is considered bullish. Conversely, when TSV crosses below the zero line it indicates distribution or selling pressure, which typically precedes a move down in price.
Example Settings:
Short Term Trading: TSV period between 9 and 12
Intermediate Term Trading: TSV period between 18 and 25
Long Term Trading: TSV period between 35 and 45
I'm currently using 24 TSV and using ROC 14 as well with it, what your looking for is for the TSV and the ROC to cross each other above the zero line and with the TSV going up and the ROC going down converging, also MS Money Flow is a good indicator as as is OBV which is just like MS your looking for upward trends on these. I'm new to this so I still learning just like you
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Registered User Joined: 5/1/2007 Posts: 158
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I used to trade options - the bid/ask spread will kill you.
2x ETF are better on all fronts, as long as it's active enough to have a reasonable bid/ask spread.
QID/QLD is safer than SKF/UYG, because Washington has less influence on MSFT than C or BAC.
I buy dips, which some analysis here has shown is better than trend following. However, in a bear market, know the company before buying. Check two year chart on AIG, FNM, NYT for some examples of what *not* to buy. Darn - today I sold QID way too soon.
I use 3 way ema, Bollinger bands, fast and slow stochastic, and MACD, plus some "propietary" info. Unlike *ahem* certain traders, my secret sauce is not for sale.
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Registered User Joined: 5/1/2007 Posts: 158
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Plus, there's the Dow is up 150 - Obama gives a speech - Dow is down 50 method of trading. But until Case-Shiller gets to under 5% down year-over-year, the markets will be weak. And this, in itself, has little to do with Obama, and lots to do with FNM, appraisers, loan officers, and rating agencies.
Also, bad mathematicians. Check out Long-Term Capital, run by two Nobel-winning economists, to find out how bad assumptions lead to financial ruin. In computer lingo, it's GIGO (garbage in, garbage out).
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Registered User Joined: 2/19/2009 Posts: 28
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when you talk of a three way ema what is that??i do use a ema its a little more sensitive than a sma .... QUOTE (tllucero) I used to trade options - the bid/ask spread will kill you.
2x ETF are better on all fronts, as long as it's active enough to have a reasonable bid/ask spread.
QID/QLD is safer than SKF/UYG, because Washington has less influence on MSFT than C or BAC.
I buy dips, which some analysis here has shown is better than trend following. However, in a bear market, know the company before buying. Check two year chart on AIG, FNM, NYT for some examples of what *not* to buy. Darn - today I sold QID way too soon.
I use 3 way ema, Bollinger bands, fast and slow stochastic, and MACD, plus some "propietary" info. Unlike *ahem* certain traders, my secret sauce is not for sale.
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Registered User Joined: 2/21/2007 Posts: 797
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craig: like i said, i'm no expert, basically a rookie at this. just by reading your posts, you seem to want to jump in full bore. options? get others opinions, but i think just learn the basic trading the market first. maybe try listing your experience and knowledge. hopefully smart guys like david john hall, reality check and others will guide you to some other sites where you can pick up alot of pointers. i've been thinking about moving up to platinum. from what i've read in some of the forums, it can be a great learning experience. you mentioned market phychology, have you read mark douglas' book "trading in the zone"? i'm just writing this cause i've done so many dumb things, wasted so much time, doing and redoing, now trading in what are some of the most volatile crazy times the market has ever seen, it seems like one has to be a sadist.
i'll give you 2 quotes from books i've read, not sure which ones, that i have pasted to my desk.
"MY NAME IS JOHN, AND I AM A LOSER! I HAVE IT IN ME TO DO SERIOUS FINANCIAL DAMAGE TO MY ACCOUNT"
"AS A TRADER YOUR HAVE THE POWER TO GIVE YOURSELF MONEY OR TO GIVE YOUR MONEY TO OTHER TRADERS"
i wish you good luck and to all other traders
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Registered User Joined: 2/19/2009 Posts: 28
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john thats good advice im defnately not jumping in full bore...just trying to find the best route to take for research right now,i think asking more questions is better but im not going to throw myself in the deep end right now ,i have before but i want to get a better understanding of how other traders are trading i will check out those books you mentiond....have been reading some of John Murphys material pretty good.Thanks for the help i was a long term trader before made money but have also lost money...what i ve come accross here is a whole new animal indeed. QUOTE (johnlc) craig: like i said, i'm no expert, basically a rookie at this. just by reading your posts, you seem to want to jump in full bore. options? get others opinions, but i think just learn the basic trading the market first. maybe try listing your experience and knowledge. hopefully smart guys like david john hall, reality check and others will guide you to some other sites where you can pick up alot of pointers. i've been thinking about moving up to platinum. from what i've read in some of the forums, it can be a great learning experience. you mentioned market phychology, have you read mark douglas' book "trading in the zone"? i'm just writing this cause i've done so many dumb things, wasted so much time, doing and redoing, now trading in what are some of the most volatile crazy times the market has ever seen, it seems like one has to be a sadist.
i'll give you 2 quotes from books i've read, not sure which ones, that i have pasted to my desk.
"MY NAME IS JOHN, AND I AM A LOSER! I HAVE IT IN ME TO DO SERIOUS FINANCIAL DAMAGE TO MY ACCOUNT"
"AS A TRADER YOUR HAVE THE POWER TO GIVE YOURSELF MONEY OR TO GIVE YOUR MONEY TO OTHER TRADERS"
i wish you good luck and to all other traders
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Registered User Joined: 2/21/2007 Posts: 797
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craig: i opened my file cabinet, something i should do more often for reviewing stuff, to some of the worden reports that you might like. i recall you were on stockfinder, hope you can check past worden reports on T.C... if you can, try these for some interesting reading
january 14 2005 dame common sense
june 28 2005 the worden report the omnipresent conundrum
april 28 2006 sir game force
sept. 14 2006 sir oil patch lawyer
i read murphy's "the visual investor" my opinion, so so. -- compared to other books i've read. have you read "bollinger on bollinger bands"? check out the past forums "ask a trainer" , questions about bollinger bands is a high priority.
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Registered User Joined: 3/21/2006 Posts: 4,308
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Craigie, I have been swing trading FAZ on the one minute charts using support and resistance levels. When the markets are in the red and price bounces of support then she is good for a few points. Look at the Daily range of a stock and find the ones that move fast a furious, then swing the hell out of it. Some of the invers ETF's are good for this when the markets are going down. When the Markets are going up then I swing trade FAS on the one minute charts using TOS.
Indicators are just derivatives of trend and volume. Forget them and play the real thing.
We know that The financials are volatile right now and before that it was the Energy sector. Use Telechart and FINVIZ to find the most volitile sectors and have a blast...
Good luck.
Apsll.
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Registered User Joined: 2/21/2007 Posts: 797
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apsll: you want us rookies to trade a 3x etf? slow down. i'll trade QID when times are right and i'm minute trading. i remember a quote from somewhere "preserve precious capital" .
i figure as boring as tc net is, it's good to have a new trader posting. you want him to risk it all at once?
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Registered User Joined: 10/7/2004 Posts: 2,181
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Oh well, I might as well jump in here. Look, diet, exercise program, budget, you name it, the best one is the one you'll use consistently. If it doesn't make sense to you (part of that goes to the comments above that it needs to fit your psych make up), it's not a good indicator. If it makes sense to you, you'll use it. The more you use it, the better you'll become at it.
I'm very good with mine but not because they're better. It's because they're all I use...ever. I've looked at them again and again and again. I've read them and watched them until I know them inside out. Not that I'm not still learning. But my learning is geared toward the idea that I am always finding new ways to apply the indicators with which I am already comfortable...and successful.
Great quarterbacks talk about becoming great by working with the same offense and offensive strategy for a long time. They don't talk about needing a lot of new gadget plays. They talk about running the same play over and over and over again. Why? Because they learn every detail about running that play against different defenses and in various situations. They learn that play so well that it becomes their signature. And even when the defense knows it's coming, it can still be successful.
I've said it before, figure out first what you are looking for from your trading. Find your number one weakness and blind spot and, then, find a system that will help you get around that. Then find your strengths and put your focus on them. Get stronger in your strengths and you'll find the right indicators.
All the best,
TB
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Registered User Joined: 1/11/2009 Posts: 36
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Hi Craig send me a message on my E-mail address knowzleddge@gmail.com
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Registered User Joined: 3/21/2006 Posts: 4,308
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Johnlc, yes you are correct as well as my friend Tobydad. One must trade within their own comfort zone and always protect capital; I am all for these things. If one is comfortable with swing trading and you can find unique conditions "as we now currently have in the financials" then I would hate to see an opportunity slip through ones portfolio.
Bellow is a chart of FAZ on a 1 minute chart, Look at the pink boxes for price bouncing off support levels as the volume is very low (highlighted by the yellow lines). The low volume at a time when price is entering support is a good indication that price will move up. This is confirmed when as price does bounce off support levels and begin to move up that volume does come in more strong "shown by the red lines.
Craigie, try to paper trade this intraday swing trading and see how it works for you. At some point you will have to experiment to see what indeed works best.
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Registered User Joined: 7/18/2005 Posts: 156
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Review the site below for additional info about indicators.
http://www.paritech.com.au/education/technical/indicators/
pfranka
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Registered User Joined: 2/19/2009 Posts: 28
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Apsll well ive been looking at this today...i see what you mean,but was looking at my page on stock finder how do you get a intraday charts i can only do day charts and up??Also i did look at the one day noticed the last candle shows a potential chance in trend was also a indicator as i did see it jump this morning (was a nice jump too)looking at your chart that make good sense with the price bouncing off support levels... QUOTE (Apsll) Johnlc, yes you are correct as well as my friend Tobydad. One must trade within their own comfort zone and always protect capital; I am all for these things. If one is comfortable with swing trading and you can find unique conditions "as we now currently have in the financials" then I would hate to see an opportunity slip through ones portfolio.
Bellow is a chart of FAZ on a 1 minute chart, Look at the pink boxes for price bouncing off support levels as the volume is very low (highlighted by the yellow lines). The low volume at a time when price is entering support is a good indication that price will move up. This is confirmed when as price does bounce off support levels and begin to move up that volume does come in more strong "shown by the red lines.
Craigie, try to paper trade this intraday swing trading and see how it works for you. At some point you will have to experiment to see what indeed works best.
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Registered User Joined: 3/21/2006 Posts: 4,308
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The Wordens have been good to me so I will recomend their fine product. Try the "Platinum" version of TeleChart. It would not be fair to advertise a third party product on their forums "even though I already did" I should not have done so.
Good luck Craig....
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Registered User Joined: 2/19/2009 Posts: 28
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how do i get to these reports? i tried cant seem to locate them....QUOTE (johnlc) craig: i opened my file cabinet, something i should do more often for reviewing stuff, to some of the worden reports that you might like. i recall you were on stockfinder, hope you can check past worden reports on T.C... if you can, try these for some interesting reading
january 14 2005 dame common sense
june 28 2005 the worden report the omnipresent conundrum
april 28 2006 sir game force
sept. 14 2006 sir oil patch lawyer
i read murphy's "the visual investor" my opinion, so so. -- compared to other books i've read. have you read "bollinger on bollinger bands"? check out the past forums "ask a trainer" , questions about bollinger bands is a high priority.
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Registered User Joined: 5/12/2008 Posts: 102
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Apsll, that is brilliantly simple.
I've been scalping FAZ by correlating it with the SP500 and the VIX, but your approach is superb.
You can make huge amounts of money on a daily basis just from those two to three point swings throughout the day.
You could make even more if you are lucky enough to gain access to FAZ short shares.
Thanks for showing us how simple it can be.
Chris
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Registered User Joined: 2/21/2007 Posts: 797
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CRAIG: i don't know if you can view mr.worden's daily reports on S.F. if you can, that is where those articles are, written by KNIGHTS OF TELECHART. scroll back in time.
i don't know if S.F. has the teaching programs that T.C. has. there are many videos produced by the worden staff. there are tons of members who write in for help designing their own formulas for stock searches. all those are available for viewing.
have you tried "stockcharts dot com" for some educational stuff? there is a ton of stuff to learn. but most all experienced traders say "keep it simple".
dr. elder says one must learn to swing trade before day trading.
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Gold Customer
Joined: 11/22/2006 Posts: 100
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QUOTE (craigieburns) how do i get to these reports? i tried cant seem to locate them.... QUOTE (johnlc) craig: i opened my file cabinet, something i should do more often for reviewing stuff, to some of the worden reports that you might like. i recall you were on stockfinder, hope you can check past worden reports on T.C... if you can, try these for some interesting reading
january 14 2005 dame common sense
june 28 2005 the worden report the omnipresent conundrum
april 28 2006 sir game force
sept. 14 2006 sir oil patch lawyer
i read murphy's "the visual investor" my opinion, so so. -- compared to other books i've read. have you read "bollinger on bollinger bands"? check out the past forums "ask a trainer" , questions about bollinger bands is a high priority.
The Worden Report Searchable Archive Link is in the Ask A Trainer -Telechart Form as a Sticky (8th down fron the top). Just follow the link and keep clinking until you get there. Or clink here http://www.worden.com/archive.aspx (I hope this works). Click on the year, then month, then the report you want. Good reading.
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Registered User Joined: 2/19/2009 Posts: 28
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ok Guys ...i managed to locate them i have all those reports gonna read them this weekend...Thanks for the link very helpful!! QUOTE (william4567) QUOTE (craigieburns) how do i get to these reports? i tried cant seem to locate them.... QUOTE (johnlc) craig: i opened my file cabinet, something i should do more often for reviewing stuff, to some of the worden reports that you might like. i recall you were on stockfinder, hope you can check past worden reports on T.C... if you can, try these for some interesting reading
january 14 2005 dame common sense
june 28 2005 the worden report the omnipresent conundrum
april 28 2006 sir game force
sept. 14 2006 sir oil patch lawyer
i read murphy's "the visual investor" my opinion, so so. -- compared to other books i've read. have you read "bollinger on bollinger bands"? check out the past forums "ask a trainer" , questions about bollinger bands is a high priority.
The Worden Report Searchable Archive Link is in the Ask A Trainer -Telechart Form as a Sticky (8th down fron the top). Just follow the link and keep clinking until you get there. Or clink here http://www.worden.com/archive.aspx (I hope this works). Click on the year, then month, then the report you want. Good reading.
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Registered User Joined: 2/19/2009 Posts: 28
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John i read all those atricles you showd me very good...i liked the one titled "a set of rules" well this is what i want to stick with is swing trading .my next task is to look at bollinger Bands this is one of the few indicators i havent looked at yet.... QUOTE (johnlc)
CRAIG: i don't know if you can view mr.worden's daily reports on S.F. if you can, that is where those articles are, written by KNIGHTS OF TELECHART. scroll back in time.
i don't know if S.F. has the teaching programs that T.C. has. there are many videos produced by the worden staff. there are tons of members who write in for help designing their own formulas for stock searches. all those are available for viewing.
have you tried "stockcharts dot com" for some educational stuff? there is a ton of stuff to learn. but most all experienced traders say "keep it simple".
dr. elder says one must learn to swing trade before day trading.
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Registered User Joined: 3/21/2006 Posts: 4,308
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Do not waste your time. Bollinger Bands are best used as a sorting tool for defining volatility. Some use it as a gauge for over sold or overbought conditions and there is just no such thing.
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Registered User Joined: 3/21/2006 Posts: 4,308
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Sorry, if I am to make such a bold statement then it is always good to give an example. Look at my chart below. You can see the in early Semptember the bands were constricting or getting closer together. This condition indicates a reducing of volatility and usually leads to a move in price one way or the other. In this case the move was down. But notice also that when the bottom band was breached that this did not lead to an over sold condition or a revearsal in price. Instead price continued to fall further taking the bands with it. So where is it to end???? The Bolinger Band is not going to tell you......
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Registered User Joined: 2/19/2009 Posts: 28
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Apsll i have seen that in a couple examples...this is only used to gauge the volatility in the market i did read this should never be used alone should be used with other indicators for a confirmation.I wanted to ask you what you use with your support and resistance levels when trading??
QUOTE (Apsll) Sorry, if I am to make such a bold statement then it is always good to give an example. Look at my chart below. You can see the in early Semptember the bands were constricting or getting closer together. This condition indicates a reducing of volatility and usually leads to a move in price one way or the other. In this case the move was down. But notice also that when the bottom band was breached that this did not lead to an over sold condition or a revearsal in price. Instead price continued to fall further taking the bands with it. So where is it to end???? The Bolinger Band is not going to tell you......
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Registered User Joined: 3/21/2006 Posts: 4,308
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QUOTE (craigieburns) Apsll i have seen that in a couple examples...this is only used to gauge the volatility in the market i did read this should never be used alone should be used with other indicators for a confirmation.I wanted to ask you what you use with your support and resistance levels when trading??
The anwer is Volume and price.
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Registered User Joined: 2/19/2009 Posts: 28
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is this all you ever use? or do you use other techniques ,wanted to ask u when u are performing a scan what rules work best for looking for moves in the market??. QUOTE (Apsll) QUOTE (craigieburns) Apsll i have seen that in a couple examples...this is only used to gauge the volatility in the market i did read this should never be used alone should be used with other indicators for a confirmation.I wanted to ask you what you use with your support and resistance levels when trading??
The anwer is Volume and price.
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