Quote:
Originally Posted by oilfxpro
In the atttached chart there are so many lagging and false signals from all the different indicators, but if you put them all in one great indicator, I'm sure a lot of those false signals would be eliminated or reduced ...
OILFXPRO
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Personally I feel that it's perhaps a rather naive and simplistic viewpoint, assuming that you can allocate some sort of "score" based on multiple indicators that may or may not be simultaneously giving a signal.
I'll point out a few problems with this approach, firstly, there's a fairly high degree of multi collinearity in the indicators that you've quoted, so combining two or more together gives you absolutely no advantage. The first job is to ensure that your playing with independent variables, and as most indicators are based on price.... well you either understand what this means or you don't, I ain't going to hand it to you on a plate.
The second problem of course is that the indicators that you combine are still lagging !
However all that said, IF your playing with independent variables, and you understand a bit of basic probability calculus, a probabilistic approach with standard indicators can be useful.
Quote:
Originally Posted by oilfxpro
If new TRADERS are using indicators ,I suggest using only one or two indicators ....ones that are non lagging and predictive
OILFXPRO
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This statement pretty much gives the game away. I shall say this only once, There are NO predictive indicators. There are technical set ups that indicators can assist in identifying, but this is in no way predictive.
