I love this part of a recent email conversation with a reader: “Why do you hate indicators so much? You can’t beat the simplicity of an MA crossover for holding the trend.” Haha. “Hate” is a bit severe. I honestly don’t hate them at all. I use some indicators. The YTC Scalper lower timeframe template…
I was recently discussing EMA vs SMA with a trader who uses moving averages as a component of his analysis. (Note: EMA = exponential moving average; SMA = simple moving average) Specifically, one part of his methodology requires the identification of a turn of a short-term average against the trend to indicate a weakening of…
Some people are not going to like this article. That’s fine though. We may just have to agree to disagree in the end, because this is an argument that has been going on forever on trading forums without ever finding any common ground. Of course… my side of the argument is the right one… but some people…
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,…
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,…
