an indicator discussion..., page-9

The more indicators one puts on a chart, the lesser the conviction will be to the proposed trade.

Keeping it simple and basic usually wont give you the best audience, because as traders we do like to complicate things.

Yes Price is king, and risk and reward determine the patience levels required to enter a position.

If you study price action on the Dow for say the last odd 80 years you will find the simply using the openers rules on time frames varying from daily to yearly, the range for the period in question generates the following results

Frequency of trade - 65% ( you enter 6.5 out of 10 available)
50% of range - 84% of the 61
75% of range - 56% of 61
100% of range- 30% of 61

50% of the dow range currently is about 80pts, I will let you all do the sums and apply to your favored index.


The chart I open at 1125pm (when trading US) has no indicators just the candles and pay little attention to prior data, of course on the evening I will have a preferred direction, but it does not sway the rule one bit.

Some times the simplest of things go un noticed, after all we the market participants have done the same things for many years, but we the market participants are the ones always trying to change it to our way of thinking in other words we fiddle due to lack of conviction.