Rank: Newbie
Groups: Registered, Registered Users Joined: 11/22/2004(UTC) Posts: 8 Location: Malaysia
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Hi,
Should different TA methods/oscillators use in different trending time - bull trend, bear trend and sideway trend? Which oscillator is suitable for which trend?
I was reading back some materials and find that the teaching of channel/band methods are saying that if the trend move higher than the high band then trend should continue to move up and vise versa.
However, I find that it's opposite, when it hit the top band, we should be cautious as the price is at top already and at anytime it will reverse for retracement or correction. Am I right?
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Rank: Member
Groups: Registered, Registered Users Joined: 10/28/2004(UTC) Posts: 11
Was thanked: 1 time(s) in 1 post(s)
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I recall reading such concept before and find it of use. It is basically called Dynamic Indicators. An application on oversold/overbought oscillators (if you buy on cross of 25 and sell on cross of 75) is to raise 25 to 25-50 level in case of up trend and vise versa.
Hani :)
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers Joined: 3/7/2005(UTC) Posts: 1,346
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hey gnohnum.... thats a good point, the ta should match the trend or time frame....... an indicator can be effective in 1 type trend yet difficult to read in another .... that same indicator might be profitable in 1 time frame but be only a commission generator in another.....
it often incites debate for someone to post preferences.... so let me say metastock is excellent when it comes to which is best when..... the use of layouts makes side by side comparsions of the effect different time frames have on a particular indicator easy... and using templates shows the asset or liability of a particular indicator in up, down or sideways markets......
it can also be said that some explorations will be more effective in certain markets..... many times i have explored for the overbought/oversold, only to have the markets correct my definition......... h
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