Simple Explanation on Repainting, Recalculating, and Static Algorithm in Technical Analysis for the Financial Trading. More
The technical analysis is a key to successful trading. Even if you are a fundamental trader, you will need to use technical analysis for the precise control of your entry and exit in your trading. If we count the usage of every technical analysis on the earth, nearly at least a half billion of traders will use technical analysis. The problem is that not everyone is using the technical analysis in the right manner. The purpose of this article is to clear the overly spread misunderstanding about what people called “Repainting technical indicators” in the community. At the beginning, I thought that it would be only matter for starters. Later, I met many forex traders claiming 3 to 5 years of trading experience. However, most of these traders still do not have much clue what is really the repainting indicator except small portion of traders among them. Search on google was disappointing too. Some articles poorly explained on the topic of the repainting. Some articles were almost uninformative to continue to read. Some articles were almost devastated many of excellent technical analysis by some language of witch-hunting. Especially the affected technical analysis on those witch-hunting include: • Market Profile (invented by J. Peter Stdidlmayer) • Fractal indicator (invented by Bill Williams) • Fourier transform and many other signal processing algorithm (invented by Joseph Fourier and many others) • ZigZag indicator • Fast moving average including many zero-lag or non-lag moving average family • Harmonic Pattern (invented by H.M. Gartley, any many others later on) • Other technical analysis algorithm The above technical analysis and their algorithm are used by several millions of traders and scientists every day. If you are doubt, just google to look for the internet community using those technical analysis. If those technical analysis and their algorithms are repainting and bad, then why so many people are using them? Well, I think that this will remain as a myth to you until you can clear the misunderstanding about the repainting indicator.