Posted by dallahoo on 26th of Aug 2008 at 07:48 pm
I second the book recommendation, it is a wonderful read. On
trending markets, that is why oscillators can cause more harm if
they are taken for signal against the trend. In nicely uptradinf
market, overbought readings may stay overbought for a long time,
and overbought sell signals may get reversed in matter of days.
Oscillators, are, however, very good tools to use to initiate
positions in the direction of the trend, even if a signal is
premature, the trend will come to rescue
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I second the book recommendation,
Lesson's Learned
Posted by dallahoo on 26th of Aug 2008 at 07:48 pm
I second the book recommendation, it is a wonderful read. On trending markets, that is why oscillators can cause more harm if they are taken for signal against the trend. In nicely uptradinf market, overbought readings may stay overbought for a long time, and overbought sell signals may get reversed in matter of days. Oscillators, are, however, very good tools to use to initiate positions in the direction of the trend, even if a signal is premature, the trend will come to rescue