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Originally Posted by tymen1
10) Candlesticks get you into price action long before indicators - in many cases, so much so that you are closing your trade by the time the indicator trader is just opening his.
Candlesticks are the fastest form of price prediction there is. The next fastest is the ergodic candlestick oscillator which in turn is much faster than any other indicator.
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Hi Tymen...great job on the lessons! Appreciate the effort
Ok I'll bite...what's the skinny on the Ergodic Candlestick Oscillator. I did manage to find one but not much info comes with it and there seems to be a couple of varieties.
This is what I did find out and hope to to get your opinion:
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Trading Ergodics with the Trend - Rules
-Enter or hold position only when slope of Ergodic Signal line has the same direction as the trend.
-Stand aside when slope of Ergodic Signal Line is in the opposite direction of trend.
-Enter or exit position when Ergodic and its Signal Line cross.
The simplest way of using the indicator is simply to define the trend based on which side of the “0” line the indicator is located on. If the indicator is above “0”, then the trend is up. If the indicator is below “0” then the trend is down.
You can add an additional qualifier by noting the “slope” of the indicator, and the crossing points of the slow and fast lines. Some like to use the slope alone to define trend direction. If the lines are sloping upward, the trend is up. Alternately, if the lines are sloping downward, the trend is down. In this view, the point where the lines “cross” is the point where the trend changes.
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Thanks for the tip