Nasdaq in a month?

Up

The same as now

Down

I don't know

IDT - Index Day Trading

Using "Daily Market Outlook" as an additional indicator


You can use our outlook as an additional trading indicator to our existing trading system in order to reduce trading risk.

Most professional traders will make use of at least three independent indicators to come to a final trading decision.

How to work with several indicators:

  • You will not find a system that gives 100 percent correct results, nor an analyst who could predict trends with 100 percent accuracy, just as you will not find a publisher of news who will tell you 100 percent of the truth.
  • If a trader uses only one indicator (advisor), he is usually blinded by this indicator (advisor). This results in "tunnel vision" and the trader will never see beyond what that single indicator predicts.
  • additional indicator can reduce trading risk and cut losses by even a percent, it is definitely worth the price.
  • It is difficult for one trader to use several totally different techniques to analyze the market. This is why many of them use the results from several different analysts.
  • Every trading indicator has a certain level of accuracy. Sometimes in order to define this level, a trader must watch this indicator for several months.
  • The best results arise from indicators that are based on independent forms of analysis. For example, news, market sentiment, and volume are three totally different indicators.
  • Analyze the results of your indicators determine the current market stage, then make your trading decision accordingly.
  • Each indicator that you use should be assigned coefficient that is based on the strength of that particular indicator. For example, if our "Daily Market Outlook" states that there is a good chance the index will move lower in the mid-term, you should assign something like a -7 to that indicator. But if the news indicator is contrary and states with a great deal of certainty that the market will move higher, then you assign a +7 to that indicator.

    Which indicator should you follow? Well, volume tends to be much more truthful than the news, so you may want to weight these indicators and give the volume indicator 0.6 and the news indicator a 0.4 weighting. As a result of weighting, the volume indicator (0.6*-7) is greater than the news indicator (0.4*+7), but the difference between the two is not as large. In this scenario, you may want to cautiously play down.
  • Be aware of any free trading advice that you find on the internet; deconstruct where the advice comes from and who may benefit from giving you trading advice.

Example of using several indicators.

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