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.
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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
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2. Buy when the crossover is below the zero line.
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RSI
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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
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Other attractive periods when you can enter:
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