/biz/ - Business & Finance

>>20160969
The more important thing is that you learn how to backtest indicators. Pick any chart. Go back a few years. Slap on an indicator, make comparisons between it and price action that happened after key areas in the chart. Mainly look at what it had to say around reversals. If you were using indicator in question, did it tell you to sell before a major drawdown? Did it tell you to buy shortly after bullish reversal? Was is late or early? Was it even close?

If it's way off all over the place you can toss it directly in the garbage. If it's pretty close, fashionably late on entry and pretty quick on the exit, it's worth testing more. Try fiddling with the settings to see if you can make it better. Go through and mark entry and exit signals, measure how much you would have gained or lost. Some indicators will be good for entries but not exits and vice versa. Some work better with longer time frames and some with shorter.

None of the stuff I use is popular. I put it all together backtesting like I just described.

>>19947183
>or so the talking heads say
this is sarcasm, yes?
bond yields going down means big money is flowing into treasuries, which is risk-off, and generally means money doesn't flow into stocks.

>>19947040
You may be interested in a concept called the Issue-Attention Cycle. It's not exactly what you describe, but it is a similar concept.