Ask Colin

Should I use the same indicators in both bull and bear markets?

In general terms yes, you should. You should try to become very familiar with the indicators that you have chosen to use. It is easier to make good calls on the market using tools you know and understand, rather than trying to use unfamiliar tools.

The tools you use should also be driven by your investment plan. The rules and guidelines that you have for buying and selling should be driven by the tools that your investment plan uses. It is not a good idea to be introducing new tools unless you change your investment plan to include them and the way you include them is consistent with the plan in its entirety.

However, there is some scope to use different parameters in bull and bear markets. In very general terms, many up trends are slower than down trends.