DigiNomad, there are momentum indicators

    mining stocks

    Posted by junkie on 19th of Jan 2023 at 11:53 am

    DigiNomad, there are momentum indicators and oscillation based indicators. For trending moves, momentum based indicators are most suitable. An example of a momentum based indicator is MACD and MACD histogram. A good momentum indicator will stay put for the duration of the trend. Some indicators are faster than others. Momentum indicators work well on 30-minute charts and longer. For day trading,  momentum indicators are very specialized and based on volume rather than price or on alignment of multiple time frames. A bear flag will not work on 5-minute chart if the 30-minute chart is bullish, etc. FWIW.

    Mining Stocks - Not exactly

    Posted by DigiNomad on 19th of Jan 2023 at 12:06 pm

    Mining Stocks - Not exactly my line of reasoning but you make good points. I'm going to look into the last one as I hadn't thought of that previously.

    Maybe easier to think of what I'm trying to say in terms of the BPT KISS charts.   Notice how the 195 minute has been killing it in the very near past?  But it's not always the 195 that respects the supports, resistances, buy/sell cycles, etc. Sometimes other time frames make the KISS systems look like a soothsayer (borrowing Steves' terminology). But if you picked the 195 today and decided to always trade on it because it nailed it for a  couple of weeks, you would eventually find that another timeframe is performing better. 

    DigiNomadSee how complicated it gets?

    Posted by brophy on 19th of Jan 2023 at 12:01 pm

    DigiNomadSee how complicated it gets? haha Junkie is right of course. But what anybody needs to do is paper trade their favorite indicators until they feel good about them and know exactly how they work. I think the most un-talked-about indicator is the Hull Moving Average. It does not lag and accurately helps you follow the trend. I use it in 9 and 20 Ma.

    The trade-off for a momentum

    Posted by junkie on 19th of Jan 2023 at 12:08 pm

    The trade-off for a momentum indicator is accuracy versus speed. Since accuracy is preferred, a momentum indicator is necessarily slow.

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