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Chapter Three
Dick Quiter:
Indicators That Make SenseAt Least to Me |
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Dick is one of the most low-key brokers and advisors I have met. For more than 20 years, Dick's clients trading longevity in the market attest to his experience. When it comes to trading Chicago style, there are popular indicators used by traders and brokers. Here, Quiter talks about his favorite indicators. |
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Neal: Dick, let's talk about some of your favorite indicators. If you don't mind, I'm going to include some of the samples you are showing in this interview. So, what is your favorite indicator, Dick? |
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Dick: Well, I do not have one favorite indicator. And I wish to add, indicators are just that, indicators. Too much time is spent on indicators rather than on the fundamentals that drive the market. However, one indicator I do consider is divergence. This can be used to measure many concepts. Figure 3-1 demonstrates divergence between price and volume. While price was falling during the first two weeks of February, volume was increasing. This indicated a selloff, which finally ended at the end of the month, when prices once again began to climb. |
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Charts courtesy of Aspen Graphics. © 1999 Aspen Research Group Ltd. |
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