Hi. I have experimented with these indicators a lot and I think they are not of much use. they simply react to the market and bear no predictive perspective. Although they proved useful in ranging markets. what are your thoughts guys?
I would say that using these channels and bands to predict market behaviour is like looking at a highly accurate scientific-grade thermometer this afternoon to predict the temperature at midday tomorrow.
If it is Spring and the weather has been getting warner its probably going to be a bit warmer tomorrow. But most probably it will be very similar to today. A thermometer accurate to 0.01degC won’t make this more accurate.
These TA tools are useful more for identifying what the trader should do, not what the market should do.
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The only thing I’ve ever found useful on BB’s is the center line, which is just a 20MA. I’ve never tried the other one and have no interest in doing so.
Another "quirky thing " the Aroon indicator
Hi, the effectiveness of the indicator depends on how you use it and in which market.
You will use different settings for short-term strategies than for long-term ones. The type of order, the pending stop or limit and the market are also important factors as not every market handles every type of order to the same degree. Regards Greg