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There is a synergy that exists between different indicators you place on your trading screen. All too often, I see traders use one oscillator, maybe two oscillators, and make their trading decisions based upon the readings from these oscillators. In my opinion, this is a mistake. In general, oscillators give you a one-dimensional view of the information they are designed to analyze. In order to trade effectively, you in effect need a three-dimensional view of what is happening in the market.For that reason, I use a variety of indicators to give myself a more rounded view of the market action. By definition, oscillators are formulaic versions, or specialized formulas, that analyze a certain market function. Most oscillators are typically lagging indicators because they analyze and store data in arriving at the product of their calculations. While historic data can be very useful, it can sometimes put you behind the actual price action occurring on your trading chart. In my trading, I use several oscillators but also added some other indicators that give me a more current view of what is occurring.One such indicator, and I think it is absolutely necessary, is the NYSE tick. There are...more
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