technical indicators correlation to asset prices
John Addae:
May i know the opinions and suggestions with regards to the choice of technical indicators based on their correlation to the price of the asset in question.
For example RSI, MACD, CCI, MA21, TR etc, should their correlation to the closing price of the asset like stocks be the main criteria for choosing them?
May i know the opinions and suggestions with regards to the choice of technical indicators based on their correlation to the price of the asset in question.
For example RSI, MACD, CCI, MA21, TR etc, should their correlation to the closing price of the asset like stocks be the main criteria for choosing them?
Interesting Question.
From my little experience , i would suggest splitting Correlation to 2 parts .
Technical , and Fundamental.
Technical correlation would be the index moving alongside or counter to the price action
Fundamental correlation (called correlation for ease) ,would be the correlative or inverse correlative relation of points of importance between the index and the price action.
For example RSI, MACD, CCI, MA21, TR etc, should their correlation to the closing price of the asset like stocks be the main criteria for choosing them?