Glen - Technical Analysis10 May 2018 22:03
The past few days I've been trading using technical analysis -
*Bollinger Bands - Gives general feel for the state of the market
*Fast Stochastic Oscillator - ABOVE 95 = sell signal
*RSI - ABOVE 70 = sell signal
*MACD - didn't find it particularly useful for day trading but kept it open out of habit.
I used the Hargreaves Lansdown site using the 1W chart for GLEN.
Yesterday afternoon things changed.
Both the Fast Stochastic and RSI indicated VERY STRONG sell signals...
... but the price rose rapidly.
However, the MACD, which is was usually not as accurate for GLEN on this time frame, indicated a STRONG buy.
A broadly similar situation occurred today - Fast Stoch and RSI indicating Sell signals while the MACD indicating strong Buy signals.
Today, I trused the MACD instead of the Fast Stoch and RSI and made more money again.
Why has the reliability of the technical indicators changed?