Trading Process and Strategy

My Favorite Indicator

Here’s a recent question I received… “If you had to use one indicator, and one only, which would it be?” Simple… no thought required… Keltner Channels. Parameters set to (10,1.5) as my default, varying to (10,2) or (10,2.5) if necessary to ensure a nice snug fit around the price. You’ll find some basic info here: http://en.wikipedia.org/wiki/Keltner_channel,…

Trading Process and Strategy

A Common Indicator Mistake

I love it when I read forum entries from people suggesting trading strategies along the lines of: Enter long when the RSI(14) is above 50, the stochastic (14,5,3) has crossed positive, and the Williams %R(14) is rising from the oversold area Enter short when the RSI(14) is below 50, the stochastic (14,5,3) has crossed negative,…