Indicators VS Market Conditions

Indicator	Trading Market	Trending Markets		Changing Markets
Indicator	Trading Market	Bull	Bear	Trading to Bull	Trading to Bear	Bull to Trading	Bear to Trading
Moving Averages	Many false breakouts and whipsaw action	Valid breakouts and continuous confirmation	Valid breakouts and continuous confirmation	Excellent behavior	Excellent behavior	Excellent behavior	Excellent behavior
Relative Strength	OB/OS indication excellent	Skewed number of signals to more overbought	Skewed number of signals to more overbought	Increasing signals to OB	Increasing frequency of OS signals	Equal number of OB/OS signals from OB skew	Equal number of OB/OS signals from OB skew
Percentage R	OB/OS signals are valid	False OB signals valid. Use modified OS	False OB signals valid. Use modified OS	Valid signals give way to false OB	Valid signals give way to false OB	False OS to valid signals	False OS to valid signals
Oscillators	OB/OS signals are valid	False OB signals valid if using modified OS	False OB signals valid if using modified OS	Valid signals give way to false OB	Valid signals give way to false OB	False OS to valid signals	False OS to valid signals
Stochastics	Crossovers OB and OS are valid	Crossovers from OS only are valid	Crossovers from OS only are valid	Crossovers of OB/OS valid to only OS indicators valid	Crossovers of OB/OS valid to only OS indicators valid	Only OS area crossovers are valid to both OB/OS valid	Only OS area crossovers are valid to both OB/OS valid
Stochastics	Crossovers OB and OS are valid	Crossovers from OS only are valid	Crossovers from OS only are valid	Crossovers of OB/OS valid to only OS indicators valid	Crossovers of OB/OS valid to only OS indicators valid	Only OS area crossovers are valid to both OB/OS valid	Only OS area crossovers are valid to both OB/OS valid
Point and Figure	False breakouts whipsaw action	Valid breakouts	Valid breakouts	Can project counts to likely tops	Can project counts to likely bottoms	Cannot forecast	Cannot forecast
Market Profile	Normal distribution	Can observe and tell upside breakouts	Can observe and tell upside breakouts	Can see buildup of buying pressure	Can see buildup of buying pressure	Great appearance of non trend days	Great appearance of non trend days
Tic Volume	Very good accumulation indicator	Can use to possibly pyramid	Valid but impractical signals	Excellent accumulation indicators	Too late to signal volume distribution	Flattening of OBV breakouts	Flattening of OBV breakouts
On balance volume	Very good accumulation indicator	Too long to use to pyramid	Valid but impractical signals	Excellent accumulation indicators	Too late to signal volume distribution	Flattening of OBV breakouts	Flattening of OBV breakouts
Bar Charts	Valid, recognizable patterns	Valid, recognizable trend lines, channels	Valid, recognizable trend lines, channels	Reversal patterns valid	Reversal patterns valid	Reversal patterns valid	Reversal patterns valid
Astromical Cycles	No good	Not applicable	Not applicable	Excellent turning points	Excellent turning points	Excellent turning points	Excellent turning points
Elliott Wave Theory	Hared to show beginning and end – just that it is occurring	Can project market to take out previous high	Can project market to take out previous lows	Probability can be determined that this will happen	Probability can be determined that this will happen	Probability can be determined that this will happen	Probability can be determined that this will happen
Gann Analysis	Whipsaws	Long for the up move	Short for the down move	Can get you long but whipsawed first	Can get you long but whipsawed first	Whipsaw first then profits	Whipsaw first then profits