AGAIG Non-Repaint Verses Repaint Indicators for TOS

[csricksdds]

REPAINT or DOES NOT REPAINT​

I am always interested when an indicator is labeled Repaints verses Non-Repaint.

So the question arises: Repaint vs. Non-Repaint Indicators: Which is Better?

Every type of indicator has advantages and disadvantages. Myself, I am more dependent on indicators that repaint. To mitigate the repainting, I rely on two (or more) indicators telling me the same thing before placing a trade.

For instance, the Opening Range Breakout becomes static after the first 15-30 minutes and stays the same for the rest of the day. The stock may end up trading above, within, or below that range. A High, or Low for the day will also stay static unless a Higher High or a Lower Low is achieved.
For day trading purposes I find the Murrey Math Pivots as my repainting indicator as it will move with the Highs and Lows.

I also rely on the 1 SD (One Standard Deviation) since it has been shown that a stock moves within 1 SD as a rule during the day and the options market is mathematically designed, and priced, on a one standard deviation basis.

Non-repainting indicators are designed to show past and present price data. They don’t change once they have formed using historical price and volume data. They don’t have the ability to predict the future.

I use repainting indicators for trading within expiration, a week or less. As a rule, my trading is for in/out trades today, regardless of expiration. To me, a profit is a profit and one never loses money when they take a profit.

In short, indicators that repaint can change their signals or values after they have been generated, which is why I want agreement between two or more before placing a trade and am prepared to exit a trade if they reverse. This is why some traders don’t recommend repainting indicators. Remember though that I am now 81 years old and need as many positive current indicators as possible!

Non-repainting indicators are more stable and provide a more reliable signal. They include more back testing in the signal generated. This makes for less stressful trading?

However, Non-repainters lack real-time price action, which is what I’m looking for.
Otherwise, I might miss some good trading opportunities!​

Repaint indicators continually adjust to new market condition and provide signals based on the most recent price data, which is helpful in faster moving markets. To me, they frequently give me a head start on a reversal taking place.

The difference then is based on your trading style, both of which can be profitable at least up and until after eighty-one? One of the paradoxes of life is that “A thing and its opposite may both be true.”

One of the natural laws of life is Non-Completion: “We are always expanding our concepts and re-inventing ways to do things.”

[mod note]:
read more about repainting indicators: https://usethinkscript.com/threads/answers-to-commonly-asked-questions.6006/#post-57833

 

[TOS2221]

it has been shown that a stock moves within 1 SD as a rule during the day​

Standard deviation is a statistical measure of how much a stock's price tends to deviate from its average price, it's not a rule that a stock will stay within 1 SD during a trading day.

 

[useThinkScript]

@TOS2221

You will find that @csricksdds provides fundamentally sound advice

Price action only has less than .3% chance of staying above a 3rd deviation. 5% chance above 5%
As a rule, the majority of the time:

a stock will stay within 1 SD during a trading day.

 

[csricksdds]

Thanks for the support. It is statistically correct. I checked with Tom Sosnoff (father of TOS) and he said it is a correct assumption statistically speaking which is why the market is based mathematically on 1 SD (of course with a few Greeks thrown into the equation for good measure)