Bruce,

I use MACD 5,20 & Stochastics 5,3 but often have to re-examine which indicator is working best.  There seems to be some overlap with the 2 indicators & I like when that happens but MACD works best for Trending stocks while Stochastics works better for Rolling stock. 

What indicators work with Both Rolling & Trending stock to identify support & resistance when analyzing short-term price movements (5 to 20 day - short cycle trading) and can they be adjusted to give a smoother picture of up & down cycles? 

2nd question: I've heard that long-term investors think most technical indicators are of little value except for entry & exit points (a short & a very long eMA),  True?  If a person wanted to start with a small valued stock & wait for it to grow 55% in a year, which long term indicators work best for entry/exit? 

The trainers can't give setting, interpretation or investment advice. I will move this topic to the Stock and Market Talk forum where other traders are more likely to see it and comment.

Typically oscillators are adjusted for short term trading by reducing the period to say 8, 5, 3.

MACD Hist can be easily adjusted by making the end numbers equal and the middle one double.
Try anything from 3,6,3 to 8,16,8.

Unfortunately when you go shorter you get more noise so try something that’s smoother to begin with
like True Strength Index or Ergodic Oscillator.

You could also look for something non indicator like a green candle
or two at support.

2) Google Chuck Hughes he has videos on you tube.

I believe he uses a 50 ema above a 100 ema for long-term trends
and OBV above its 100 ema.

Sounds as good as anything.

Once a stock is considered bullish he looks for dips into the lower portion of a kelter channel.

Remember that everyones opinion is simply that.
Look at these things yourself and make sure they suit your trading style.


Thanks

Diceman,

I appreciate the info!  It's been interesting to look over the MACD data as I've been adjusting & readjusting the values.  It's been a choppy market (at least the stocks I've recently selected) for short term trades.  It's easy to be shaken out of a position but the MACD seems to hold firm & is not a shakey as I am.  :)

I'll be evaluating the other indicators in the near future.  Thanks again. 

i agree with everything diceman says...personally, my short term portfolio is based on weekly entries and exits and i've been holding some positions for a few years...my longer term portfolio uses monthly entries and exits...i say that only to dispell the notion that longer term traders don't rely on technicals...i'm pretty much all technical...i keep things very simple though and only use 2 moving averages and volatility stops to keep me on the right side of a trend... i used to rely on several indicators but found they are all variances of the most important thing, which is price... so i decided to stop using indicators and focus solely on price...if your leg ain't broken...you don't need a crutch...and i liken most indicators to a crutch...having said that...trading is evolutionary and it's all about finding what works for you...good luck and enjoy the journey...

Good points Diceman and ssspector.  Ssspector your take on indicators pretty much aligns with mine; I too have gradually weaned myself off of them save for a few moving averages.  I’ve read most of the classics and contemporary trading books by the verified successful stock traders, and it’s near unanimous that they focus only on price, volume, a couple moving averages, balanced out with pattern recognition skills.  You mention most indicators as being a crutch; you’re in very good company because world champion trader David Ryan  in an interview referred to most indicators as “training wheels,” and went on to say that if a trader wants to advance he must sooner or later ditch the training wheels.  Another world champion, Mark Minervini, only uses price, volume, moving averages.  Dan Zanger, the best of the best states, “I don’t use really any indicators whatsoever except a few moving averages.”    That same theme runs throughout some of the great classics, such as the Market Wizard books, Nicholas Darvas, Livermore, O’Neil of IBD.  One of the Market Wizard traders, either in a book or interview, stated that he knew some successful traders who did use other indicators, but he suspected deep down that they probably had great pattern recognition skills.  Interesting topic, thanks.

ssspector - would you mind sharing how you trade with weekly charts? Thank you for your help.