i use times series forecast and macd on strategy runner one minute chart for my indicators high strike rate
times series is set at at 5 and first two of macd is set at half the default
eminis only havent tried it on forex yet
Interesting discussion so far. Splitlink got me curious about what people are watching every day.
If anyone's willing to post I'd like to know you have your screen set up. I use candle or bar for price, SMA(5), SMA(10), SMA(50) (just to see if I can make anything useful out of watching them), PSAR, RSI(14) and MACD (12,26,9).
I follow that entirely, Brambly One, but in my mind there's possibly some circularity in Goslin's argument, because it seems to me that he's inferring that the price will go up because the average goes up, whereas in reality the average will only go up because (if) the price has gone up. However, it's late and I'm more tired than usual and I concede that I may not be doing him justice, and I may not be doing you justice, and I may not even be doing DB justice (but he's probably used to that).
My take on dropping off the numbers is not that it affects the price but it draws your attention to what the price has been doing the last couple days and takes your eyes off the indicator. If it's been in a slow downtrend and then starts popping down and you focus on the indicator and not the recent price then you might miss a good opportunity to get in.
I have always used candlesticks in my day trading of the emini s&p 500, I am only in a simulator still, will be going live soon. I would like to use indicators and have been looking into using these in my simulator. But I am a little lost. I have read tons about them in these past months of learning to trade.
In my simulator when I choose to add a moving average it asks me from a drop down box to choose from simple, weighted and exponential. When I choose for instance simple, then it asks me the day number. I read that day traders trading the emini s&p 500 like to use 4, 9 and 18 day moving averages. So I select those 3 figures. Then press okay and it loads up on my chart. But I now only see 2 lines, one is green and the other is red. Then I choose the macd and that enters another line on my chart which is blue. I use a candlestick chart on a 1 minute tick. The moving average lines do not seem in line with the candlesticks and rather too far apart which does not seem accurate, what's up with this?
Has much changed ?
I keep expecting technology to finally get to grips with this problem and in time I am sure it will.
In fact I have invested in neuroshell. Preliminary results look promising but far from certain. Adaptive Modeler is another high tech possibility.
P.S. Wonder if El Splitto is still alive and kicking after another 5 years ?
Of course there are "leading indicators " - but like any indicator - lagging or leading - they will never be 100% correct
For me with Forex trading - main leading indicators are divergence of oscillators - trendlines - S & R interim levels ( known in advance ) and my own favourite linear regression price structure off a tick or one min chart combined with time of the hour and session and day.
Are they accurate - yes over 65 -70% probability and even more if experienced and the market is being kind.
Price action on its own lags - yes its partly leading on a one min chart - but session price structure and time of hour out trump it ;-)