Oscillators are definitely a taboo subject.
People say that oscillators do react late in relation to the price, that they give a more
immediate and filtered reading of the price and that they therefore reduce the
information it gives.
Of course, a line drawn with a mathematical formula can not, at any time back up
my personal decision about the risk I want to take.
A very interesting observation came from a pleasant chat with a directional trader
recently...
When stock exchange traders were
computers and could not calculate the MACD or stochastic value at any moment of
the day.
Traders knew the prices of the previous stock exchange session and they could
mark with a pencil, in a notebook, the prices of the trading day that were shown on
a luminous strip display.
These traders managed enormous capital and represented the interests of
institutions that definitely did not trade on the stock exchange to lose their money.
Today, computers allow us to automate complex formulae in a second and this
allows analysts and private traders to go crazy using indicators and "magicformulae", which have nothing to do with the price, other than as the basis for a
calculating model that tries to explain what the price already says.
The more you move away from the pure price, the more you go towards something
that does not represent the price at all.
In any case, I want you to remember that what we buy and sell is always a price,
never one of its derivatives, the stochastic is not on sale☺.floor members they certainly did not have
0 commentaires:
Enregistrer un commentaire