Indicator is a basic tool for TA software. Most TA software can support script for screening for winning stocks. The winning stocks are in the stock market and having an effective screening script is the key to finding them. It behaves like a sieve. It is the foundation for a trading system.
What else to learn in technical analysis apart from indicators ?
- Thread starter demo_account_zz01
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1) Stops should be placed where the market proves your trade was wrong. If your stops keep getting hit they are too close to your entry price.
2) Choose instruments that exhibit patterns of TA. This can be seen for example, where something like Forex or Futures have actual trends.
3) Understand how price movement is created. Many just trade patterns, however for example, there is an inventory report for oil futures that comes out each Wed. This report creates a price movement, and you don't want to have a trade right before it comes out. This is true for all market moving reports.
4) Choose a time of day or night when price actually moves. You can see movement and patterns over the last 5 days for any normal time frame chart. Don't have trades or trade during a time when nothing is happening.
5) Last but not least choose a style of trading. You could be a position trader, swing trader, or scalper. See what fits your personality and if you don't know what I am talking about look it up.
6) Finally, if you are totally new, it does not hurt to buy a book on TA or PA. After that you do need to spend time trading charts. No one becomes Elon Musk over night.
2) Choose instruments that exhibit patterns of TA. This can be seen for example, where something like Forex or Futures have actual trends.
3) Understand how price movement is created. Many just trade patterns, however for example, there is an inventory report for oil futures that comes out each Wed. This report creates a price movement, and you don't want to have a trade right before it comes out. This is true for all market moving reports.
4) Choose a time of day or night when price actually moves. You can see movement and patterns over the last 5 days for any normal time frame chart. Don't have trades or trade during a time when nothing is happening.
5) Last but not least choose a style of trading. You could be a position trader, swing trader, or scalper. See what fits your personality and if you don't know what I am talking about look it up.
6) Finally, if you are totally new, it does not hurt to buy a book on TA or PA. After that you do need to spend time trading charts. No one becomes Elon Musk over night.
Do you mind tell what your trades are based on? Is it like based on MA, Bollinger band?
Thanks.
No MA and no Bollinger band. In future I will create some youtube videos and post how to read PA (price action).
Any book recommendations would be great. There's so much on offer it's hard to know which ones offer solid material.
Screening scripts can be very risky. There is no better analytic tool than your expertise on the markets whether it is the stock market or the forex market or any other market. The screening script isn't able to count the emotion of the market.
I absolutely agree but when there is not much time at hand these technical analysis tools are very much beneficial. One can identify the opportunities to trade which otherwise may have been skipped.
True! The judgement and all the data from the indicators and charts sum complied will give you your entry points. The exit points depend on a plethora of factors. The broker which has been chosen for its features like low spreads, quicker order execution etc. would be a contributing factor in the winning security. I am trading with forex brokers HYCM, Fxview and Roboforex using D1 charts for knowing the trend of the market and M15 charts for scalping. I use a mix of manual and automate trades because don’t you think algos can never replace the judgement needed to be manually done.