SwingTrader1
Recruit
- Messages
- 16
Technical Analysis
Technical Analysis is used to identify where to enter a market it can also be used to identify limits and stops.
I should have pointed out in my last article that fundamental analysis can be used for the same thing however I dont believe with as great an accuracy as technical analysis.
In technical analysis a trader uses indicators to determine entry/exit points in the market as well as stops and limits.
There are a numerous different indicators available and many are very good. I will cover a couple just to give an idea of how I do my technical analysis. Keep in mind this is definitely not the only indicator available and my view is just one.
What I like to do first is identify the short term trend (is the market going up or down) I use an oscillator called Slow Stochastics. This is not the only oscillator indicator available its just the one I happen to like to use. If you go to this link List of Technical Analysis Terms Terms
it explains many indicators and how they are used.
Once I identify if the market is going up or down I like to "try" and find an entry point in the market. To do this I like to use price action.
I determine where the market is in relation to previuos price then I place my trade.
So technical analysis is used to identify trend, is the market going up/down and also where to place entries, stops and limits.
The biggest piece of advice I would give to any aspisring trader is experiment with indidcators as much as possible until you find the right combination that will work for you.
Technical Analysis is used to identify where to enter a market it can also be used to identify limits and stops.
I should have pointed out in my last article that fundamental analysis can be used for the same thing however I dont believe with as great an accuracy as technical analysis.
In technical analysis a trader uses indicators to determine entry/exit points in the market as well as stops and limits.
There are a numerous different indicators available and many are very good. I will cover a couple just to give an idea of how I do my technical analysis. Keep in mind this is definitely not the only indicator available and my view is just one.
What I like to do first is identify the short term trend (is the market going up or down) I use an oscillator called Slow Stochastics. This is not the only oscillator indicator available its just the one I happen to like to use. If you go to this link List of Technical Analysis Terms Terms
it explains many indicators and how they are used.
Once I identify if the market is going up or down I like to "try" and find an entry point in the market. To do this I like to use price action.
I determine where the market is in relation to previuos price then I place my trade.
So technical analysis is used to identify trend, is the market going up/down and also where to place entries, stops and limits.
The biggest piece of advice I would give to any aspisring trader is experiment with indidcators as much as possible until you find the right combination that will work for you.
