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Old 10-21-2006, 02:24 PM
tortoise tortoise is offline
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Re: Divergences: Indicators?

Indicators are signal processing. That's it. Signal processing is useful, so long as you're clear on the signal being processed.

I began trading as an indicator junkie. Later, I came to see indicators as "useless" and relied on price action/market internals alone. Then, as my understanding of market dynamics deepened, I brought a couple of indicators into the picture. I have found them, most assuredly, "useful".

But...

I use them now with the understanding of what they are and what they are NOT.

What they are -- visual representations of signal processing algorithms

What they are NOT -- substitutes for a thorough understanding of what's really going on.

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