Studies on Indicators and Oscillators?

[London Minnow]

Anyone out there have know of any long-term studies on the effectiveness of different oscillators (for predictive value) pitted against each other and their weaknesses/advantages?

Each security has a different model for which its price moves, but I'd really like to see a complete and thorough study done for popular indicators with statistics, not just personal preference.

ACC/Dist
ADX
Aroon
MACD
RSI
OBV
Scholastic
Etc.

 

[Vicorka]

Anyone out there have know of any long-term studies on the effectiveness of different oscillators (for predictive value) pitted against each other and their weaknesses/advantages?

Each security has a different model for which its price moves, but I'd really like to see a complete and thorough study done for popular indicators with statistics, not just personal preference.

ACC/Dist
ADX
Aroon
MACD
RSI
OBV
Scholastic
Etc.

Try to go through scan results of different indicators at Trading Systems. It should give you some impression on what indicators and for what stocks. From my persona experience I would focus on indicators that combine volume, volatility and price action.

 

[neil]

If indicators worked don't you think the big banks and everyone else would be coining it with the moving average crossovers etc etc.

 

[cablemonster]

If indicators worked don't you think the big banks and everyone else would be coining it with the moving average crossovers etc etc.

what makes you think banks dont use indicators? I can tell you they use ma's, stochs, bollingers, rsi, fibs.

 

[Vicorka]

If indicators worked don't you think the big banks and everyone else would be coining it with the moving average crossovers etc etc.

"If it would be easy everyone would be a winner which would made everyone a looser". Is that what you want to say?

Funds portfolio managers - show me how many of them beat the market (S&P 500) on long-term basis. Most of them use other people's money and are paid from "Maintenance fee". Banks invest much bigger money (again other people money) than all of us and when they invest they do it differently. My personal opinion is that big money manipulate the market and all you can do is to try following them.

When it comes to indicators, some of them work and some do not. On my opinion, you cannot blindly follow an indicator, you have to understand it. Plus, there should be high discipline. Plus, if you trade long term you should use fundamentals and you cannot relay solely on technical indicator. That is why not everyone is a winner.

 

[neil]

what makes you think banks dont use indicators? I can tell you they use ma's, stochs, bollingers, rsi, fibs.

But..............do they work (making the traders who use them profitable over time -yearly?)

Is your statement based on anecdotal evidence or verifiable figures?

 

[malaguti]

what makes you think banks dont use indicators? I can tell you they use ma's, stochs, bollingers, rsi, fibs.

now we know why the banking sector has been so f****ed up relying on indicators

 

[London Minnow]

I think it's ignorant for even the most purist fundamental investors to discard indicators and oscillators because all that they are, are the derivatives of past price action; which comes from the supply and demand of the security, therefore affecting the fundamentals of the stock at any given moment.

The future price of a security as supply is held constant must be at least a little indicated by past price action because pricing suggests valuation and is subject to market time lags exist. I'm sure banks are aware of this, and with careful planning they can stand to make more money this way. Why else would speculative prop trading exist? The fundamentalists would beat us every time.

 

[cablemonster]

But..............do they work (making the traders who use them profitable over time -yearly?)

Is your statement based on anecdotal evidence or verifiable figures?

My statement is based on convos I have had with several bank traders. If you dont think indicators are important pull up a daily chart of any instrument and look what happens on the 200ma. Of course most traders try and use indicators out of context.

 

[susve99]

in Eurostock Screener you can easily backtest any parameter. In the website you will find a very interesting blog (unfortunately only in spanish) where regularly some backtested strategies are shown

Anyone out there have know of any long-term studies on the effectiveness of different oscillators (for predictive value) pitted against each other and their weaknesses/advantages?

Each security has a different model for which its price moves, but I'd really like to see a complete and thorough study done for popular indicators with statistics, not just personal preference.

ACC/Dist
ADX
Aroon
MACD
RSI
OBV
Scholastic
Etc.

 

[neil]

My statement is based on convos I have had with several bank traders. If you dont think indicators are important pull up a daily chart of any instrument and look what happens on the 200ma. Of course most traders try and use indicators out of context.

Agreed-the 200 ma is a useful guide if used intelligently

 

[BeginnerJoe]

So how do we use this 200 ma indicator ? I will give it a test if someone tells me how.

 

[the hare]

So how do we use this 200 ma indicator ? I will give it a test if someone tells me how.

Why would you even waste time doing something so ridiculous ?

I suppose you could do it 4 d lulz

I'm sure no one ever thought of testing it before

 

[BeginnerJoe]

Why would you even waste time doing something so ridiculous ?

I suppose you could do it 4 d lulz

I'm sure no one ever thought of testing it before

Since the banks are using that, it would make sense to get on board.

 

[Vicorka]

Since the banks are using that, it would make sense to get on board.

How did you find out that banks are using it ??? from their promotional flyers where they are advertising their funds and asking you to invest via their portfolio managers?