Indicators delay
Page 1 of 105 123451151101 ... LastLast
Results 1 to 10 of 1046

Thread: Indicators delay

  1. #1
    Super Moderator Gulfstream's Avatar
    Join Date
    Jan 2013
    Posts
    898
    Promo (¢)
    0
    Thumbs Up
    Received: 220
    Given: 111

    Indicators delay

    Very often you can hear the phrase, "Here, this indicator is late, this is why everything is bad." It’s a weird phrase. All technical analysis indicators are late because they more or less rely on historical data. If we take a long period, they are late more, if the period is shorter they are late less. But all the same, they are late. Always. Even a teak price change is late, and what can we say about indicators…

    Is it that bad anyway? After all, it has an advantage, which is a continuation of this disadvantage. And that advantage is smoothing.

    Not allowed!

  2. #2
    Super Moderator Gulfstream's Avatar
    Join Date
    Jan 2013
    Posts
    898
    Promo (¢)
    0
    Thumbs Up
    Received: 220
    Given: 111
    For example, we are building a trend strategy, and we want to stay in trend as long as possible. What do we do? We need to determine what size of slops and correction we would like to ignore. Note them on the chart. Next, we select such parameters of the trend indicator that would smooth the chart and these corrections.

    Relationship between the parameter and the indicator is simple. Usually the bigger parameter you take, the more late the indicator will be and the greater corrections it will cut off.

    What other observations can be made of the trend indicators in relation to the delay? The truth is that when you use any indicator and its set you can do only part of a trend. Because of the delay, the indicator will show us turn if the trend is progressing. Therefore, the input will always be above the bottom of the trend. Similarly, the indicator will show us the output signal, not when the trend reaches a maximum point, but during the correction of the trend. I.e. doing that we will always lose a piece of the bottom and the top. The more options we take, the bigger these "pieces" will be.

    Not allowed!

  3. #3
    Super Moderator Gulfstream's Avatar
    Join Date
    Jan 2013
    Posts
    898
    Promo (¢)
    0
    Thumbs Up
    Received: 220
    Given: 111
    It seems that if you want to take the "undone trend pieces" as little as possible it should lead to a decrease in the indicator parameters, but here we come across with the fact that even a small move against the trend, will be seen by the indicator as a trend in the opposite direction. And it will enter it as a new trend. The result is the increasing number of losing transactions.

    So we came to the problem that we need to choose such an option that on one hand would not make us "cut" the trend and on the other hand would not devastate our deposit by the inputs on corrections. This is a good technical problem that has many worthy solutions. That is the problem we need to solve, rather than complain that "now this indicator is delayed, that’s why everything is bad."



    source_http://ichechet.livejournal.com/3556.html

    Not allowed!
    Last edited by Gulfstream; 02-27-2013 at 04:33 PM.

  4. #4
    Registered user
    Join Date
    Aug 2013
    Posts
    20
    Promo (¢)
    30
    Thumbs Up
    Received: 0
    Given: 0
    Quote Originally Posted by Gulfstream View Post
    Very often you can hear the phrase, "Here, this indicator is late, this is why everything is bad." It’s a weird phrase. All technical analysis indicators are late because they more or less rely on historical data. If we take a long period, they are late more, if the period is shorter they are late less. But all the same, they are late. Always. Even a teak price change is late, and what can we say about indicators…

    Is it that bad anyway? After all, it has an advantage, which is a continuation of this disadvantage. And that advantage is smoothing.
    any indicator it will always be running late with the price, because the indicator is just following the price and not the market price of the following indicators so you should not believe it fully against any indicator species

    Not allowed!

  5. #5
    Rookie martyn's Avatar
    Join Date
    Jul 2013
    Posts
    1,328
    Promo (¢)
    1,030
    Thumbs Up
    Received: 19
    Given: 0
    Indeed, there are many indicators that provide predictions with slow, usually it happens when the market moves in a certain pattern, and can not be properly analyzed by the indicator. Indicators are the worst in this condition is the usual indicator gives a signal after the trend going on, so we usually open the order in accordance with the signal given by the indicator, and in a short while later, the market has been doing reverse direction.

    Not allowed!

  6. #6
    Registered user
    Join Date
    Aug 2013
    Posts
    262
    Promo (¢)
    2,290
    Thumbs Up
    Received: 11
    Given: 1
    Quote Originally Posted by fajarnursalim View Post
    any indicator it will always be running late with the price, because the indicator is just following the price and not the market price of the following indicators so you should not believe it fully against any indicator species
    I agree with you that I do not like trading using indicators final because they follow the price is very large and the loss ratio by also great, and I when I was new on the market lost $ 200 because of the reliance on indicators so I decided not search or thinking indicators final at this time

    Not allowed!

  7. #7
    Rookie
    Join Date
    Mar 2013
    Posts
    3,947
    Promo (¢)
    0
    Thumbs Up
    Received: 216
    Given: 113
    Indicators are always late and the trader needs to develop the skills to use them. With good knowledge and experience a trader can red the charts properly and make efficient use of indicators to analyze the Forex market and form his trading decisions. Indicators being late is not any reason or excuse for losses.

    Not allowed!

  8. #8
    Registered user
    Join Date
    Aug 2013
    Posts
    223
    Promo (¢)
    10
    Thumbs Up
    Received: 4
    Given: 2
    we all know that all the indicators follow the price but not all indicators help us to predict the market but a few and we cannot know it without trading on demo to learn and test all the indicators and choose the good one that give us good result and let us to use it on real account .

    Not allowed!

  9. #9
    Registered user
    Join Date
    Aug 2013
    Posts
    769
    Promo (¢)
    355
    Thumbs Up
    Received: 7
    Given: 4
    Quote Originally Posted by Gulfstream View Post
    Very often you can hear the phrase, "Here, this indicator is late, this is why everything is bad." It’s a weird phrase. All technical analysis indicators are late because they more or less rely on historical data. If we take a long period, they are late more, if the period is shorter they are late less. But all the same, they are late. Always. Even a teak price change is late, and what can we say about indicators…

    Is it that bad anyway? After all, it has an advantage, which is a continuation of this disadvantage. And that advantage is smoothing.
    It's not that bad because we can also open a position before the indicator showing the signal and we can be more confident once the indicator also showing same signal with the direction of our open position. Usually I also adding more order when the indicator showing same signal with my existing open order.

    Not allowed!

  10. #10
    Registered user
    Join Date
    Aug 2013
    Posts
    10
    Promo (¢)
    30
    Thumbs Up
    Received: 0
    Given: 0
    indicator is not good most of the indicator give fake signal we have seen new trader are depends on indicator so they fall
    in lose ,so we have to use leading indicator.

    Not allowed!

Page 1 of 105 123451151101 ... LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •