No, not all roads lead to Rome. But all collinear indicators do.
https://usethinkscript.com/threads/...nt-to-successful-trading-in-thinkorswim.6114/
In this case, both indicators are measuring the speed of price movements.
This is why when building a sound strategy, one needs to use non-collinear indicators.
Many n00b traders put 4 odometers onto their charts thinking that when they all match that it is a sign from the gods.
read more: https://usethinkscript.com/threads/basics-for-developing-a-good-strategy.8058/
I really appreciate your very important explanation. I was not aware of the fact you point out, at least not conceptually, and this will force me to review the indicators I use, my way of setting up the chart and how to look at a chart. Now, I realize that 2 important trading systems I follow are now, to me, clearly based in that non-collinear concept and I will mention them for those who know them or are interested:
The simplest one, Vectorvest DEW trading system, which consists of:
-Detrended Price Oscillator (DPO) for cycle confirmation,
-Price Envelopes for volatility and
-Weighted MA for trend with very simple rules to apply,
and as optional, uses in addition to that, MACD for trend and a custom S/R indicator.
and to my preference, Didi trading system, which uses different indicators for entries and exits:
-ADX/DMI to point trend or no-trend, S/R prices, and times the initial stage for closing a trade
-Didi Index, based on 3 simple MAs, to point for confirming entries (long/short) and eventual extreme exits
-Bollinger Bands (BB) openings for timing the entry and closing bands for exits
-Stochastic in agreement with TRIX to close
In summary:
Entry: ADX/DMI + Didi Index + BB
Exit: ADX + Stochastic + TRIX + BB
PS: I don't like Volume based indicators as I follow SPX and NDX