Why I do not really use indicators
As you can see from the day chart, by using the William%R indicators, it shows a few contradictory signals.
The first one at 13 May 2019 does not cause too much damage as the fall was not that great.
But look at the most recent one; 24 Feb to 16 Mar 20. If you had relied solely on this indicator and assume the market is ready to buy, you would have suffered a heavy losses, more than 35% to be precise.
By drawing a blue trend line , we can see clearly the bullish move was over on 25 Feb 20. Then, studying the price action closely, it did not plunge down immediately, there was retracement and Mr Market in a way gives us early warning as we could still sell on 5 Mar 20.
In my opinion, indicators are a guide so use it with a pinch of salt.
The first one at 13 May 2019 does not cause too much damage as the fall was not that great.
But look at the most recent one; 24 Feb to 16 Mar 20. If you had relied solely on this indicator and assume the market is ready to buy, you would have suffered a heavy losses, more than 35% to be precise.
By drawing a blue trend line , we can see clearly the bullish move was over on 25 Feb 20. Then, studying the price action closely, it did not plunge down immediately, there was retracement and Mr Market in a way gives us early warning as we could still sell on 5 Mar 20.
In my opinion, indicators are a guide so use it with a pinch of salt.
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