A quiz for all members

[Dr Iraj]

All TA indicators are function of only two variables. Price and volume. Which indicator is price based and which one is volume based? The quiz is,... is that then correct to use two priced based indicators to confirm a buy signal?(this is a biased approach. It is biased because both indicators use the same variable i.e. price) Should not we, be confirming a priced based indicator by a volume based indicator?

 

[Cigar]

Can we then list the following:

Price only indicators
Volume only indicators
Price and Volume indicators

How important are Price and Vol indicators?

 

[traderx]

VOLUME BASED
Volume Oscillator
Volume Accumulation Percent
Volume
Split Volume
Split Volume MA
Positive Volume
Negative Volume
OBV

PRICE BASED
Volatility
MACD
Zig Zag
ESA
MA
21 day high / low
Stochastic
Price Phase
RSI Wilder
ADX/R
MACD Oscillator
Trading Channel Index
SK – SD Stochastic
BBs
Direction Movement

VOLUME / PRICE COMBINATION
Volume Price Trend
Trend Score
Traders Index
Money Flow
MF Oscillator

 

[Dr Iraj]

Thanks Trader and Cigar,

It is quite normal to have two priced based indicator such as MACD and RSI as a base for your analysis but you MUST have at least ONE volume based indicator to confirm the findings from the Price based Indicators. Both price and volume indicators should agree before a credible signal is issued.
I have seen some analysts who recommend stocks only on one set of indicators.

 

[CHARTY]

Correct. I always look at the volume. I also use the on-balance volume indicator. I have access to money flow from Byriani, but never found it could add value to my analysis.

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The above does not represent financial advice.

 

[wasp]

Thanks Trader and Cigar,

It is quite normal to have two priced based indicator such as MACD and RSI as a base for your analysis but you MUST have at least ONE volume based indicator to confirm the findings from the Price based Indicators. Both price and volume indicators should agree before a credible signal is issued.
I have seen some analysts who recommend stocks only on one set of indicators.

Ahhh, once upon a time, they were everywhere! 😱

 

[Dacamic]

I have not found it necessary to have both price- and volume-based indicators; nonetheless, the underlying point I believe you're making is valid: indicators should offer different perspectives. For example using only price-based indicators might be okay if some show price movement and others monitor divergences. Or, maybe a stock-level indicator can be confirmed by a sector- or index-level indicator. Regardless of indicators being used, it makes sense to not have them all looking at the same side of one coin.

 

[rathcoole_exile]

Wasp, should we start calling you Burke or Hare ?

 

[TheBramble]

Twilight Zone

I'm just waiting for Michael Jackon to turn up.