Top Technical Indicators As Determined by Backtesting:
(FYI, no indicator can be used in isolation)
For more information as to the entry / exits used with these indicators:
https://www.marketvolume.com/technicalanalysis/rating.asp
1. Keep in mind that most oscillators are collinear, meaning most measure the same thing.
So the above list only shows that some oscillators have a SLIGHT edge over others.
2. Oscillators have issues, as seen here:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/
Oscillators have value when used CORRECTLY!
The oscillators on the list were tested with detailed specifications to maximize profitability.
If you click on the link for the Stochastic indicator, it will explain that it must be refined by volume and have an added moving average to use as a signal line in order to be used profitably.
3. The list was found to be the best of the best oscillators when tested on a DAILY chart.
Oscillators look for the cyclical pattern of price movements, which are measured best on higher timeframes.
The use of oscillators on lower timeframes can result in false signals and whipsaws, as the overall trend can be difficult to identify on these smaller aggregations.
Hope this helps.
(FYI, no indicator can be used in isolation)
| Rating | Trading System | Rating Points |
| 1 | Stochastics Momentum Index (SMI) | 33302 |
| 2 | Smoothed RSI | 32106 |
| 3 | Average True Range | 31156 |
| 4 | Relative Momentum Index (RMI) | 30451 |
| 5 | Stochastics | 30187 |
| 6 | SBV Flow | 30173 |
| 7 | Volatility adjusted MACD (V-MACD) | 29424 |
| 8 | Awesome Oscillator | 28904 |
| 9 | Relative Volatility Index (RVI) | 28424 |
| 10 | Ultimate Oscillator | 27302 |
https://www.marketvolume.com/technicalanalysis/rating.asp
1. Keep in mind that most oscillators are collinear, meaning most measure the same thing.
So the above list only shows that some oscillators have a SLIGHT edge over others.
2. Oscillators have issues, as seen here:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/
Oscillators have value when used CORRECTLY!
The oscillators on the list were tested with detailed specifications to maximize profitability.
For example
If you click on the link for the Stochastic indicator, it will explain that it must be refined by volume and have an added moving average to use as a signal line in order to be used profitably.
3. The list was found to be the best of the best oscillators when tested on a DAILY chart.
Oscillators look for the cyclical pattern of price movements, which are measured best on higher timeframes.
The use of oscillators on lower timeframes can result in false signals and whipsaws, as the overall trend can be difficult to identify on these smaller aggregations.
Hope this helps.
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