8/6/2019 Indicator vs Market Conditions

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I n d i c a t o rs i n M a r k e t C o n d i t i o n s

Green - Excelent indicatorRed - No Good

Yellow - Okay but use cautionWhite - Okay but not great

06/07/2011 06:20:24 Page1 of 1

Trading Market Trending Markets Changing MarketsComments

Bull Bear Trading to Bull Trading to Bear Bull to Trading Bear to Trading

Excellent behavior Excellent behavior Excellent behavior

Percentage R

Oscillators

Stochastics

Point and Figure Valid breakouts Valid breakouts Cannot forecast Cannot forecast

Market Profile Normal distribution

Tic Volume

Bar Charts

No good Not applicable Not applicable

Gann Analysis Whipsaws

Moving

Averages

Many false breakouts

and whipsaw action

Valid breakouts and

continuousconfirmation

Valid breakouts and

continuousconfirmation

Excellent

behavior

RelativeStrength

OB/OS indicationexcellent

Skewed number ofsignals to moreoverbought

Skewed number ofsignals to moreoverbought

Increasing signalsto OB

Increasingfrequency of OSsignals

Equal number ofOB/OS signalsfrom OB skew

Equal number ofOB/OS signalsfrom OB skew

OB/OS signals arevalid

False OB signalsvalid. Use modifiedOS

False OB signalsvalid. Use modifiedOS

Valid signals giveway to false OB

Valid signals giveway to false OB

False OS to validsignals

False OS to validsignals

OB/OS signals arevalid

False OB signalsvalid if using

modified OS

False OB signalsvalid if using

modified OS

Valid signals giveway to false OB

Valid signals giveway to false OB

False OS to validsignals

False OS to validsignals

Crossovers OB andOS are valid

Crossovers from OSonly are valid

Crossovers from OSonly are valid

Crossovers ofOB/OS valid toonly OSindicators valid

Crossovers ofOB/OS valid toonly OS indicatorsvalid

Only OS areacrossovers arevalid to bothOB/OS valid

Only OS areacrossovers arevalid to bothOB/OS valid

False breakoutswhipsaw action

Can projectcounts to likelytops

Can project countsto likely bottoms

Can observe and tellupside breakouts

Can observe and tellupside breakouts

Can see buildupof buying

pressure

Can see buildup ofbuying pressure

Great appearanceof non trend days

Great appearanceof non trend days

Very goodaccumulationindicator

Can use to possiblypyramid

Valid but impracticalsignals

Excellentaccumulationindicators

Too late to signalvolume distribution

Flattening of OBVbreakouts

Flattening of OBVbreakouts

On balancevolume

Very goodaccumulationindicator

Too long to use topyramid

Valid but impracticalsignals

Excellentaccumulationindicators

Too late to signalvolume distribution

Flattening of OBVbreakouts

Flattening of OBVbreakouts

Valid, recognizablepatterns

Valid, recognizabletrend lines, channels

Valid, recognizabletrend lines, channels

Reversal patternsvalid

Reversal patternsvalid

Reversal patternsvalid

Reversal patternsvalid

AstromicalCycles

Excellent turningpoints

Excellent turningpoints

Excellent turningpoints

Excellent turningpoints

Elliott WaveTheory

Hared to showbeginning and end just that it isoccurring

Can project marketto take out previoushigh

Can project marketto take out previouslows

Probability can bedetermined thatthis will happen

Probability can bedetermined thatthis will happen

Probability can bedetermined thatthis will happen

Probability can bedetermined thatthis will happen

Long for the upmove

Short for the downmove

Can get you longbut whipsawedfirst

Can get you longbut whipsawedfirst

Whipsaw first thenprofits

Whipsaw first thenprofits