Thanks for your reply that I first have to digest However, I've mentioned that I don't use the stochastics as it is - I modify it in order to get rid of the 0/100 bounds. The value then is centralized around 0. In regards to divergence I ...

How to properly use indicators

Rather interesting. Thanks for sharing! Do you just look your numbers to pick the pair that you trade later on or do you also enter the market based on your numbers? And how do you decide when to exit?

How to properly use indicators

Good to have you here and good that you mentioned the exit. Surely, I'm still a noob trader. But I gathered so far that a good exit could be based on a faster occuring signal than the entry trigger. For instance, if I stick again to my stochastics ...

How to properly use indicators

1. We can say that indicator values represent prize. I wouldn't say that it neccessarily lags. (See my last post.) 2. Correct - divergence occurs wherever it wants and has no impact on prize (only on noob traders). 3. The biggest source compared to ...

How to properly use indicators

Exactly. It simplifies data. But in that way it still contains each and every information that the former prize contains (yes, not bar-by-par OHLC but the HLC of the complete lookback period). Thus, it should be able to succeed with indicators, too. ...

How to properly use indicators

I think the logic is not that bad ... However - just my interpretation.

How to properly use indicators

I'm sure that there are other ways to succeed. But I think you will also agree that there are some traders out there that are successful using indicators.

How to properly use indicators

Maybe you could give an example ...

How to properly use indicators

Ok, here you go (although I've already repeatedly mentioned it. While studying the charts with CPs influx indicator where he marked entries/exits, I made the this observations: Whenever the longer-term momentum breaks out together with the ...

How to properly use indicators

Never looked at it. But it sounds interesting. Do you have a link?

How to properly use indicators

Exactly. We can either interpret it as boundaries or we look at it in terms of momentum. You can see that recently prize didn't leave its upper prize range. Thus, prize went up due to your 151-momentum(*). Now use another momentum, compare it with ...

How to properly use indicators

And now relate this with a stochastic with %k = 80. It's exactly that simple. Alternatively you also could use Donchian Channels, the CycleIdentifier or the ZigZag indicator. They are all based on this principle. However, I don't believe in ...

How to properly use indicators

Now I've changed the period of the blue stochastics indicator. The blue indicator represents now a particular short-term momentum while the green indicator represens a particular long-term momentum ... My idea was that it should be always a good ...

How to properly use indicators

Yes, I know that list. But even there some questions keep unexplained. For instance, here he showed how to use multiple MAs in order to read the prize action from higher TFs. But what does it mean if prize is in above 2 and below 2 MAs, what if ...

How to properly use indicators

Hi Aich, I agree with all of your points. I know that no indicator will be right 100 % since the market can change whenever it wants to and it doesn't care what the indicators tell. However, I believe that it is possible to filter many wrong signals ...

How to properly use indicators

Great idea to discuss these things, too. Share whatever you want. I'll post some more ideas/interpretations after inishing myday job.

How to properly use indicators

Ok, let's start ... Look at the attached image CP posted here. It doesn't matter which indicators he used - what matters is that the indicator readings react to prize changes and thus are related to it. When I first saw this image I had the ...

How to properly use indicators

I've already read it. Just like to point out that convergence is only an illusion ...

AMAZING Strategy!!!

Can you, italy, or someone else tell me why the heck divergence should work. Do you understand when a divergence like that occurs? Let's look at a stochastic indicator. There you'll see that a bar-to-bar divergence can occur if the highest or lowest ...

AMAZING Strategy!!!