Which indicator comes closest to being the most complete one?

sh50

Active Member
#1
I met somebody today who stated that Accumulation/Distribution was a really complete indicator since apart from opening price, it incorporated everything- closing price, high, low and last but not the least volume. He said similarly about some other market strength indicators and was skeptical on RSI, Stochastics etc since they do not incorporate volume and without volume price rises, declines can be deceptive. One can of course plot volume alongside RSI and observe but I found this quite interesting because of the common saying Volume precedes price.

If the above(A/D) is not true, which is the indicator likely to prove to be the most useful-majotiy of situations. I know TA is subjective but still

Any comments traderji?
 
Last edited:
C

CreditViolet

Guest
#2
Just to add
Market Facilitation Index comes pretty close.It was developed by Bill Williams of trading chaos.Along with the paint bar studies of fake,squat etc they actually make a very good indicator though not a perfect one.A few of the useful one I find.
 

Traderji

Super Moderator
#3
I do not think that any single indicator can come close to being the most complete one. All indicators have their own weakness and strength. Generally a complete trading system compromises of a set of indicators.

As I like to trade trends and in the direction of trends I think the single most robust and important indicator for me is the "moving average"! It helps me to visually identify trends at a single glance.
 
#6
You have an interesting site and as a novice to this field I am keen to learn more on the various aspects of trading. Presetly I am studing a book "Technical Analysis of Stock trends" by Robert Edwards and John Magee" find it very confusing . Looking for something more simplified and hence easier to follow. Which indicator would you suggest which comes closest??? and what would you give it in terms of % over the rest.
THANKYOU.
wincel
 

kkseal

Well-Known Member
#7
As far as i see it Acc-Dis has 2 disadvantages

i) It's slowed down by the cumulation
ii) As it's based totally on a single (last) bar, it's distorted somewhat by gaps

So a modified version would work better.

Regards,
Kalyan.
 

kkseal

Well-Known Member
#8
Edward & Magee's book was the first one i read on TA & i consider myself fortunate for it. I don't see it as just a book on patterns, but rather how price & volume together (patterns are just the 'footprints' of this price-vol play on the charts) can depict demand-supply. It's pure, classical TA based on just price & volumes. To me it's a great work.

Regards,
Kalyan.
 
#9
I do not think that any single indicator can come close to being the most complete one. All indicators have their own weakness and strength. Generally a complete trading system compromises of a set of indicators.

As I like to trade trends and in the direction of trends I think the single most robust and important indicator for me is the "moving average"! It helps me to visually identify trends at a single glance.
Moving Average,
Which Time frame??

I mean for short or intraday basis.....

Do you use moving average cross-over?

Please guide us in detail.....we are begginer.

Thanks
RON.
 
#10
I do not think that any single indicator can come close to being the most complete one. All indicators have their own weakness and strength. Generally a complete trading system compromises of a set of indicators.

As I like to trade trends and in the direction of trends I think the single most robust and important indicator for me is the "moving average"! It helps me to visually identify trends at a single glance.

Hello Mr. Moderator .

You are perfectly correct.

In any kind of market, the crossover of moving averages particularly 14DMA and 45 DMA for day trading is a pucca one. You can confirm this in Nifty futures on Friday 12th Oct 2007 in the later part of the trading day. Absolute identication can be made when you apply this 2 mt bar.

hats off to your remark.
 

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