Come on people?? no one heard of a Complex cluster indicator?????????????????????????? damn, has anyone tried it yet after looking at it? A lot of convergence and divergence to be taken advantage of.. ;p
The indicator looks at the relative strength of a currency against a whole lot of other currencies, so you need to feed it with multiple quotes, which makes it CPU intensive. It then calculates a relative position and a multi-quote momentum for the selected currencies.
I am not sure that it gives you an edge, you can also simply try a momentum indicator for the currency pair that you want to trade.
Last edited by Fat Tails; June 27th, 2011 at 05:05 AM.
I'm not even seeing where you draw the edge. Normally when someone crafts an indi, they put screen captures of the absolute best/most perfect instrument and time period to show how great an indi it is.
An indicator better do one of 2 things. Help to anticipate trend or strength. Trend is easier to establish than strength. Which is why money management is the more difficult phase of a trading plan. (i.e. entry is much easier determined than exit).
I've not studied or used these indi's, but all I see is a bowl of pasta in their examples.
You trade trade converging and diverging currencies. When one currency is above the others and is dropping down and another currency is below the others and is shooting up.
How is this better than other indicators? Well simply you can take advantage of both a currency in decline and a currency on the rise through a pair. If you downloaded and looked at this indicator over time you see patterns in it. You see how currencies react to one another. You can use this indicator to get a snap shot of currencies relative strength with out comparing pairs relative to other pairs on charts.
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