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?
Hi John,
The main criteria for choosing an indicator must be what information it's providing you rather than the correlation to price. Some indicators are oscillating in nature and thus correlation in this aspect would not provide any meaningful input. However, you should try to use indicators predicting different things, like a trend indicator and a volume indicator gives you information about 2 different things. The correlation amongst the indicators themselves should be avoided for better prediction results.
Hope this helps!