I hope this system will help those who are confused by present day FUNDAMENTAL NOISE.If you're trading with weekly or daily charts,always take a look at a monthly chart and trade with the monthly trend. Above the special CLOUD is BULLISH and below is BEARISH.The 10 MA above / below cloud is a confirmation of the trend.The 3 indicators below are used for filtering or confirmation and or to obtain an earlier exit or entry. Trend lines breaks of the BB%R can be used to obtain warnings or earlier signals,it's also used as above / below mid point signal. CCI(50) channeling gives a good indication of trend. At present I would keep an eye on the 2 trend lines below the BB%R and the 10MA. price below the 10Ma and BB%R below the longer purple line would signal a trend shift.Knowing your basic candle stick patterns is also a plus. You may wish to use your own set of indicators but don't change the CLOUD or MA settings.
Does this mean that that technical factors are more important than macro? The "FUNDAMENTAL NOISE" is really big reason for me to stay out of the long position now.
nmike
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There is nothing wrong with using FUNDAMENTALS along with technicals.But in my opinion the technicals are far more precise and often ahead of the game. If you ask 10 different analysts about the economy, you're going to get 10 different answers.What you see on a chart is the SUM and final opinion,of all those analysts. Furthermore, MARKETS are more often than not MANIPULATED, and ONLY CHARTS can detect manipulation NOT fundamentals.
In March 2009,if you were only listening to FINANCIAL NEWS you were probably thinking that the world was coming to an end.THE CHARTS TOLD A DIFFERENT STORY. Charts DON'T LIE.PEOPLE DO.