There is much education on sources such as YouTube on how to use various indicators. Much of what is taught is subjective and passed from one teacher in err to another. This misinformation causes confusion and losses in trading.
To fully understand indicators, many times we need to go right back to the original source and evaluate what the original indicator author was trying to accomplish. I will provide as much history of the indicator and the original intent as possible.
The other point needed to understand indicators is that many of them were calculated in the 1970s-1980s when the market was moving much slower. Because of this, parameters on the indicator might need to be adjusted for a faster moving, broader spread market.
Another thing that individuals get caught in doing is looking for the golden indicator. The one indicator that tells them EVERYTHING. They don’t exist.
What we do is combine indicators together in a dashboard configuration and we read it in a manner where we look to find how many indicators are bullish, neutral, bearish. There is no such thing as over sold or over bought.
The indicators I will cover on the follow on pages will be:
APO
RSI
Stochastic
Williams %R
SAR
CCI
Moving Averages
Then I will combine them together and provide a trade system for you to follow (if you desire).
Orion Price Prophet 