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#1 Posted : Wednesday, September 29, 2010 12:14:02 PM(UTC)

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I would like to take a look at this type of Overbought Oversold indicator. What is the consensus on which serves ones purpose best for trading? I do both EOD and Daily trading, but the Daily Trading is only done for the purpose of Buying or Selling something that I had already to act on the previous day. Thanks, Bill
#2 Posted : Wednesday, September 29, 2010 2:00:31 PM(UTC)

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Both are momentum indicators.They work well in trending markets, but tend to falter in sideway

Williams % R acts like a reverse Stochastic Indicator.

Both indicators are limited by a ceiling and a floor level ie: when they continue to make new highs,the indicator stays above 80 but does not reflect the true level of the indicator.

a better choice of indicators are the CMO or StochCMO

one indicator alone doesn't make for a trading system, adding a trend filter and a trailing stop will improve your system and trading results
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