From my perspective I’m seeing there are some here who seem to be using indicators in isolation as a buy signal. No offence to anyone in particular Just because a MACD turns, oscillators react, or a bullish candle appears , in isolation they mean bugger all.
Using indicators in isolation as a buy signal is one quick way to the poor house guaranteed. For those of you who don’t use T/A then I apologize for the terminology below.
This is a small snippet of what I posted sometime ago regarding indicators on one of my posts 4/1/09. Most indicators attempt to smooth price out in order to make it clearer. From my perspective I want as much information as I can possibly read, without that it's like reading a book that's had every second word removed. You may get some understanding, but you'll never get the whole story!!All indicators are lagging, as they are derived from historical data. the degree of the lag being determined by the parameters in the set up of the indicator. PRICE ACTION & levels also need to be considered etc……….……
There is also a well worn cliché for traders –trade what’s presented not what you think is presented.
cheers
POS Price at posting:
28.3¢ Sentiment: None Disclosure: Held
