Indicators

 June 2, 2020

What are indicators? Rsi, macd, ema,etc. Para saan yan sila?

Do they predict what’s going to happen sa isang stock?

Nope. Walang predictive capability ang indicators. They just indicate.

“Eh maam tested ko na na kapag above ma200 uptrend”

Nope. Kapag above ma200 ang price what does it mean?It means na ang current price ay mataas sa average ng 200 days na price. Will it go up? Maybe yes. Maybe no.

Indicators just indicate.

“Eh maam bat strategy mo based sa alma at macd yung mama ba yun?”

Tama ka. Basee yun sa alma at nililinis ni macd yung fake outs. Kapag nabreak si alma as resistance at bullish cross si macd buy ka. “Eh meaning noon mam u expect or ur predicting na aakyat yung price”

Predicting no. You simply see na yung price ay above na sa alma. You buy.

If bumagsak you cut ur losses.
“Maam wala din pinagkaiba sa ma200 na uptrend eh”

Meron. Yung MA at Alma magkaiba ng speed ng pgchange or pag adapt sa price. Isa yan sa difference. When you say things like “kapag nbreak ma200 uptrend” hindi strategy yan. Its prediction.

Sa case ni mama you buy kapag nahit ang signal. Do you know what will happen next?No. But… this is a big but…. You dont know what will happen next but you know what you will do with whatever happen next. If nghold ang alma hold ka. If nabreak sell.

If you see an indicator never treat it as a tool na mgpredict ng igagalaw ng stock. Instead make a system na me gagawin ka or may katapat na galaw yung kung ano man igalaw ng stock.
Fibonacci levels. “Pag dating sa level na to bounce yan” Nope. It should be, “pag dating sa level na to kung magbounce hold ko but if hindi sell ako”

Enjoy ur stay sa TL. More lessons to come!