Indicators
As I’ve written earlier, I am not a big fan of indicators. I think they are too far
removed from the actual market data, which makes it difficult to reconnect
them with fast-moving markets requiring instant decisions. Nor is it always
easy to determine what they are actually measuring. You can’t determine what
you did wrong (or right) if you don’t really know what you did! The visual clues
using market environments offer a better approach.
Nevertheless, I do watch two very simple indicators. One of them is a
simplified calculation of a market environment ratio; the other attempts to
measure how important the price activity of any given period is to the broader
scope of the market.
As I’ve written earlier, I am not a big fan of indicators. I think they are too far
removed from the actual market data, which makes it difficult to reconnect
them with fast-moving markets requiring instant decisions. Nor is it always
easy to determine what they are actually measuring. You can’t determine what
you did wrong (or right) if you don’t really know what you did! The visual clues
using market environments offer a better approach.
Nevertheless, I do watch two very simple indicators. One of them is a
simplified calculation of a market environment ratio; the other attempts to
measure how important the price activity of any given period is to the broader
scope of the market.
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