The Most Valuable Technical Tools for Discretionary Traders

After muddying the brain with every over-complicated indicator known to man and a few dolphins, I have regressed. I've learned that all I need to trade is one moving average and an unorthodox entry and exit method. But you'll notice I said "I"...not "you" in the above sentence. Everyone is different.

LizardGizzard
 
Originally posted by peterhill
Interesting post..... your list does not include an oscillator. To me, these are a key tool, which work in conjunction with some on your list.
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RSI and stochastics are oscillators.

Incidentally, there's no particularly good reason to use more than one indicator for the same thing, e.g., MACD/ADX, and RSI/stochastic. It just gives you more to look at and doesn't provide any additional information.

--Db
 
"A Trend Remains Intact Until It Gives a Definite Reversal Signal

An up-trend is defined by a series of higher-highs and higher-lows. In order for an up-trend to reverse, prices must have at least one lower high and one lower low (the reverse is true of a downtrend)."

(Dow Theory by)
Steve B. Achelis


"Trade with the TICK not against it. Don't be a hero. Go with the money flow.

Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.

Trade with the TICK not against it. Don't be a hero. Go with the money flow.

Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers."

Alan S. Farley

Do you know of any "gems" of trading? Feel free to post them here.

cpo
 
Originally posted by cpo
I will start this thread about the most valuable technical tools for discretionary traders.

In my experience, I have found that these are the most valuable technical tools (the order is not relevant):

Price action, on candles;

Volume and open interest;

Exponential moving averages (market flow);

The Dow Theory (different time frames and trends);

Trendlines (breaks);

Classical chart formations (classical plays);

ADX (early trend signals);

MACD (trend following);

Slow Stochastics;

RSI; and....

Stochastics.

Well, that's all.

Which tools, patterns or theories do you feel are worth the effort to study? And which do you think are the most relevant on the "hard right edge"?

cpo
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When i read your list it somehow reminds me to the book I read many years ago which was written by J.Murphy on TA. As I remember he does exactly cover those points. :cool:
 
Tech tools more or less in order


[1]Discretion + bid price with candlecharts.:cool:

[2]Discretion + moving averages like 20, 50, 200 and smaller ones .:). [different colors]

[3] Basic math observations over the years.[stocks I trade]

[4] Printed chart book [watch list, years of winners,losers].
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Goal [Includes] ''To own a home free and clear and to avoid bank loans in general''- Roy Cahnman - Aardvark Trading
 
Originally posted by murray t turtle
Tech tools more or less in order


[1]Discretion + bid price with candlecharts.:cool:

[2]Discretion + moving averages like 20, 50, 200 and smaller ones .:). [different colors]

[3] Basic math observations over the years.[stocks I trade]

[4] Printed chart book [watch list, years of winners,losers].
-------------------------------
Goal [Includes] ''To own a home free and clear and to avoid bank loans in general''- Roy Cahnman - Aardvark Trading
More...

Murray:

You might want to visit these threads: http://www.elitetrader.com/vb/showthread.php?s=&threadid=9344; and

http://www.elitetrader.com/vb/showthread.php?s=&threadid=9347

With good wishes in your quest for self knowledge.

cpo
 
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