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September 8, 2005

Reader mail about indicators and beta testing Thurs., Sept. 8, 2005, 8:06 PM

I received this letter from a professional money manager who reads my blog. He makes a good point that I really wish I had an extra hour in each day to do the job I should do. But, as I say, I do what I can do.

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Bill, Thanks, I contacted John Cowie (john.cowie@nisolutions.ca) the minute I saw your article about beta testing the Market Rhythms product being developed.

By the way, You may have mentioned this in the past, but you might want to explain again to your readers that when RSI is over bought/sold and the price up/down trendline is broken, that the trade should be executed - and if their emotions are really going the other way - well, you know....fade the herd.

Also, the difference between a trend and a chop. Whether you should be looking at MACD and RSI or Stochastics and %R. Like you don't have enough on your plate already! I've seen people sell based on Stochastics in a trending market and missing a lot of the move. If you have done this already, sorry, I must have glossed over it.

Best wishes, /G

ps I've been riding gold for a couple of years and your timing has been impeccable. Hope the commercials get it this time! "

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I have always said that technical indicators are just that.... indicators! They are not to live and die for. Using them is like practising art, not science.

Posted by Posted by Bill Cara on September 8, 2005 08:06:40 PM | Category: Trend & Cycle Phases