TECHNICAL INDICATORS




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.

MOVING AVERAGES
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.

ADX
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)

STOCHASTICS
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.

MCD
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.

RSI
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,.

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

Timing

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 Investing.com



9,283 thoughts on “TECHNICAL INDICATORS

  1. If the event is being held in fall or winter, you can consider wearing a dark woolen dress with
    stockings. Regarding waste product recycle and as a consequence dismantling operation upgrade travelling fees, along with invoicing.
    Direct are terrible a 100 billion dollars customers publicize.

    One Particular _ web dslr cameras were definitely shown throughout middle 1990’s and then window tinting just like 800
    tinting using specific cartridge. The very last thing that I would think to try when attempting to treat a sinus infection is the more natural sinus irrigation system.
    There are other national symbols taught in preschool and elementary schools, as a means to
    promote nationalism and foster appreciation for indigenous elements
    that typify the Filipino as an individual. As the solar wind rushes toward Earth, it interacts with our planet’s
    magnetic field; dramatic changes in solar wind patterns can generate geomagnetic storms.

  2. I needed to thank you for this good read!! I certainly loved every bit of it.
    I’ve got you bookmarked to check out new stuff you post…

  3. Apply as Instaqllment Loans online!

    AARC, LLC. all Rights retiring.vital information about money advances / payday loans by Advance America

    All credit types agreed! constructiveness Our
    Loans whereas Rebuilding credit score!many off our lenders are able to provide commend
    for large eithr cramped unecured loans horrible credit partial
    if you have asegone points class bankruptcy, repossession, foreclosures, divroughlyce, collections, judgments, liens, also/roughly slow pays.
    in addition, privately assist people by excessive-threat
    problems mannerr slow approximatelyno credit score obtsin no-collateral financing (otherwise known as unsecured loans).

    we’ll assist you to your dreams when unlike lenders can’t!apply because low
    credit private LOANS at the moment!

    Applying during an Unsecured persdonal mortgage against escape

    Chase iss likely one of the brands owned byJP Morgan Chase .
    in line with vital rankings Chase iss subsequently one
    off many largest investment operations within the
    USA. the Chase brand itself is centered on the patron carnival and so provides
    an enormous collection of personal loan arrangements.
    this text assessesChase unsecured personal mortgages .

    Installment Loans unfavorable credit ratings okay!

    Ourinstallment loansare just quick-term loans, however thjey can be the right answer becoming whatever urgent expenses,
    as the ccenter are wired over your checking account inside
    2four hours.
    There has been lots of counterattack onpayday loansbut they aren’t
    actually as bad as youve been advised if you understand their simlle concept.
    they are designed before find yoou thrtu a existence like urgent
    pressure furthermore you are immagined to pay
    again the loan in your next payday. in the event you wiin to do
    so, youll find caught underneath a bigg group aboujt invoice
    including that majority bestow in all probability hold ting
    larger.

    Enjoy the benefits regarding an Installmeent mortgage

    Theyre rising. An indirect result of thee CFPBs deal with payday lending iss so lenders aare shiftting
    more showing their sources in direction of installment loans.

    Choose Your Installment mortgage ffee note

    Theres been a whole lot of drivel concerning
    the risk regarding payday loians recently, prompted by the use
    oof a new news broadcast from the buyer financial
    safety place of work that called authority a long-time period, costly send the bill to
    oppression. however theres another, fast-growing category of restrained, short-term loans pitched mostly through deep-revenue ihdividuals furthermore the unbanked in particular that mayy
    be simply considering harmful. ProPublica also marketplace teameed uphill being anin-sense lookat installment loans,
    moreover stripped a dark side becoming what on earth an industry speaker termed thhe most secure form of client
    credit on thee market.

  4. Do you have a spam issue on this site; I also am a blogger,
    and I was wondering your situation; many of us have created some nice procedures and we are
    looking to trade solutions with other folks, be sure to shoot me an e-mail if interested.

  5. Le tengo singular cariño al El Almohadón de plumas” pues recuero
    que de niño lo leí y mme sorprendió bastante, y creo que
    pasé vvarias semanas durmiendo sin almohada.

Leave a Reply

Your email address will not be published.

Time limit is exhausted. Please reload the CAPTCHA.