I originallty posted this reply in the equis forum but these are my observations regarding the Alphomega plugin:
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jstaron wrote:
Hi,
I noticed AlphOmega buy/sell indicators seemed to be perfect [red flag]. A dozen buy signals were indeed followed by a dozen sell signals at a higher price [60 minute periodicy] However, when I went to buy a stock [the buy signal appeared] I noticed the stock was dropping. Waiting a minute or two later, I noticed the buy altert disappeared! Is this why the buy and sell signals are perfect? Hoping there is an honest explanation for this. Please advise.
Thanks,
Joe
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Reply:
I tried the product a while ago. It uses a zig zag indicator with a percentage change. That means that on real time basis a signal may appear now and disappear a few minutes later. Somewhere in the documentation I believe they explained that before a signal becomes "tradeable" that is, before you know that it will not disappear, you need to wait for a "confirmation". Usually, by the time you receive the confirmation, the pattern is complete and a move in the opposite direction has began. therefore you end up buying high and selling low. I also thought the product is way overloaded with indicators experts and systems all doing the same thing. I believe with the intention of convincing the user they are getting a lot for their money when in fact all they are getting is a zig zag indicator combined with a 5/35 oscilator. This is a flaw of many elliott wave counters which re-count the waves continuously thus making trading impossible. From my quick observation Advanced GET End od Day does not have this flaw. You would not get the perfect picture but the signals are well defined and clear to see. It is, however, an expensive product.
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jstaron wrote:
Hi,
I noticed AlphOmega buy/sell indicators seemed to be perfect [red flag]. A dozen buy signals were indeed followed by a dozen sell signals at a higher price [60 minute periodicy] However, when I went to buy a stock [the buy signal appeared] I noticed the stock was dropping. Waiting a minute or two later, I noticed the buy altert disappeared! Is this why the buy and sell signals are perfect? Hoping there is an honest explanation for this. Please advise.
Thanks,
Joe
=====================================================
Reply:
I tried the product a while ago. It uses a zig zag indicator with a percentage change. That means that on real time basis a signal may appear now and disappear a few minutes later. Somewhere in the documentation I believe they explained that before a signal becomes "tradeable" that is, before you know that it will not disappear, you need to wait for a "confirmation". Usually, by the time you receive the confirmation, the pattern is complete and a move in the opposite direction has began. therefore you end up buying high and selling low. I also thought the product is way overloaded with indicators experts and systems all doing the same thing. I believe with the intention of convincing the user they are getting a lot for their money when in fact all they are getting is a zig zag indicator combined with a 5/35 oscilator. This is a flaw of many elliott wave counters which re-count the waves continuously thus making trading impossible. From my quick observation Advanced GET End od Day does not have this flaw. You would not get the perfect picture but the signals are well defined and clear to see. It is, however, an expensive product.
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