Something I posted late on last weeks thread may have been missed by the majority of weekend visitors, so I repost it here because it maybe helpful to those who use indicators,
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I don't use indicators very often (if at all), I just look at the price action and volume within horizontal support and resistance, and let the chart tell me what might be going on........that said, @Wayward1 once gave me some important info to consider when using indicators.........
"I'll give you two rules that will put you miles in front.
1: Make the indicator fit the chart. The philosophy of one parameter fits all is a stupid one, it assumes that all stocks move in identical cycles. Find the right parameter for that chart, and expect it to be different on the next chart.
2: Price doesn't give a rats what an indicator is doing. Only use indicators to support or rebut a price structure, so you could apply a stochastic to assist with entries/exits on a H&S for example, or OBV to assist with trend strength. Never take a signal from an indicator and expect price to comply with what the indicator says."
