“Give someone one watch and they can tell you what time it is. Give someone two or three watches and they’re not sure what time it is.”
(Richard Arms is the creator of the TRIN, also known as the ‘Arms Index’)
I saw the quote out of context, but to me this is why you want to restrict your setups to just 1 price-based indicator, 1 volume-based indicator, 1 cycle/momentum-type indicator, etc. As you add more, you get multiple indicators trying to tell you about the same thing. Then, like two watches, you suddenly aren’t sure what time it is…
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on Saturday, July 25th, 2009 at 9:43 am and is filed under Trading.
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