Aside from fundamental analysis, technical analysis is another way to approach investment decisions.
My way of using technical indicators:

1] Always monitor channels, pennants, flags and trendlines for your graph analysis.

Using the 10, 35, 50 and 200 day averages.
1. Buy when the close is above the 50 period and the 10 period average is above both the 35 and 50 period averages.
2. If the close is above the 50 period average but the 10 period average is above the 35 period average, exit shorts but do not go long.
3. Trade only in the direction of the moving averages, when there is a crossover in the moving averages trade only in the direction of the crossover.
4. When the market is trending and you are looking for a place to get in, wait for it to retrace to one of the moving averages or trendlines.
5. Assume that the main trendline or moving average will hold and not be broken. If it is strong it should act as a support and resisstance when the market approaches it.

1. When above 30, consider the trend very strong.
2. Below 20, consider the trend weak.
3. Trade only in the direction of the trend.
4. The higher the ADX the less likely that a full pullback will occur.
5. Take profits if below 20.
6. Add to position if above 30.
7. If it dips to below 30 after being above 30 for a time consider the trend to become choppy.

A cup with handle formation can take up to a year to form.

 OSCILLATORS (for trading within a range only)

1. Buy when both lines are above the oversold level.
2. Buy when the fast line %K crosses over the slow line %D.
3. Be long when both lines are above the overbought area but not yet turning lower.
4. Buy when the indicator is strong and retests its extreme.
5. Look for a failed move.
6.Look for divergence. If you see the market making lower lows while the st indicator makes higher lows: this can indicate a trend change.

1. Buy when the dotted line is above the signal line and short only when it is below.
2. Buy when the crossover is below the zero line.
3. Buy when the moving averages cross above the signal line.
4. Look for divergence.

1. Buy when the RSI comes out of oversold territory.
2. Buy when the RSI stalls at the 50 line.
3. Buy when the RSI is above the 50 line.
4. Look for divergence between price action and the indicator,.

1. Can be used for stops and stop limit orders for hedging protection on your portfolio.


Getting in at the right time is crucial. The 3ed Friday of every month and especially triple witching Friday are good turning points. If the market had a huge run either up or down leading into that day you can usually expect it to reverse for the following week.


Other attractive periods when you can enter: 

When a stock has a pullback from its annual high,

When insiders buy at the annual high

When the stock exhibits a short squeeze situation.
Expect to make money in spurts, success may be a marathon but making money is in knowing when to run the sprint. Time value erodes very quickly as expiration comes near therefore exit purchased Options no later than 1 month before expiration.

The Fibonacci Calculator is powered by

9,283 thoughts on “TECHNICAL INDICATORS

  1. Привет, Я думаю, это отличный блог.
    Я stumbledupon его;) я собираюсь возврат
    еще раз , так как я Книга отмечены это.
    Деньги и свобода является величайшим способ
    изменить, может вы быть богатым и продолжать руководство другие люди.

  2. I’m curious to find out what blog platform you are using?
    I’m having some minor security problems with my latest website and I’d like to find something more risk-free.
    Do you have any suggestions?

  3. A music video, a short film, a tutorial, a cover song, or whatever video you wanted to upload
    to Youtube, you have to edit it first. Easy Video Player allows you
    to accomplish more with your video than many other people can. In that way, they will be brought to your video and do some likes and give some comments.

  4. Everyone loves what you guys are usually up too. This kind of
    clever work and exposure! Keep up the amazing works guys I’ve added you guys to
    our blogroll.

Leave a Reply

Your email address will not be published.

Time limit is exhausted. Please reload the CAPTCHA.