Useful indicators

Gilburt: While we use various technical indicators to support or show the weakness
in any wave count, my favorite has been the MACD. Do you have any favorites that
have been most useful to you over the years?
Prechter: Nearly all momentum indicators provide the same basic information.
There are hundreds of them, because they are easy to construct, especially with
computers. I dont chart rates of change anymore because I can tell what they look
like just by looking at prices. But momentum analysis is not simple. In the stock
market, slowing momentum nearly always precedes reversals, but slowing
momentum does not mean a reversal must follow. The 1985 and 1989-1994 periods
are classic examples. In each case, the market slowed its rise looking terminal
from a momentum standpoint and then accelerated. In the first case, I knew wave
3 of 3 was dead ahead, so I was really bullish. The second one threw me off. The
most consistently useful momentum indicator is breadth. If I had to rely on only one
momentum indicator, that would be it.
Markets as fractals
Gilburt: Do you have any specific time frames in charts that, in your experience,
have provided the most insight into a specific market or commodity?
Prechter: No. Markets are fractals. Nothing quantitative is meaningful or useful.
Gilburt: There is a debate among various schools of thought as to what is more
important price or time. Whats your perspective?
Prechter: What matters most is form. Form involves both price and time, although
arguably price is the more definitive component.