Technical indicators used Traders

econ

Recruit
Messages
3
What other indicators might be useful in defining the exit in trending markets?
I've heard about Fibonacci and the use of pivot points. Also, I learned that there are some indicators which SHOULD be used in trending markets like Parabolic SAR, and for sideways markets - MACD, RSI, stochastics.
 

Bullish

Recruit
Messages
8
technical

For determining a trending market, ADX is an awesome indicator. Still used by big time traders.

Me personally, I use candlesticks and S&R (Trendlines on Monthly, weekly, daily & 4hour charts).
 

Bullish

Recruit
Messages
8
adx

The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. High readings indicate a strong trend and low readings indicate a weak trend. When this indicator is showing a low reading then a trading range is likely to develop. Avoid stocks with low readings! You want to be trading stocks that have high readings.

This indicator stands for Average Directional Index. On some charting packages there are two other lines on the chart, +DI and –DI (the DI part stands for Directional Indicator). Ignore these lines. Trying to trade according to these two lines is a great way to lose money! The only thing that we are concerned with is the ADX itself.

Because this indicator measures strong or weak trends, it can be either a strong uptrend or a strong downtrend. It does not tell you if the trend is up or down, it just tells you how strong the current trend is!
 

rpaco

Sergeant
Messages
184
The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. High readings indicate a strong trend and low readings indicate a weak trend. When this indicator is showing a low reading then a trading range is likely to develop. Avoid stocks with low readings! You want to be trading stocks that have high readings.

This indicator stands for Average Directional Index. On some charting packages there are two other lines on the chart, +DI and –DI (the DI part stands for Directional Indicator). Ignore these lines. Trying to trade according to these two lines is a great way to lose money! The only thing that we are concerned with is the ADX itself.

Because this indicator measures strong or weak trends, it can be either a strong uptrend or a strong downtrend. It does not tell you if the trend is up or down, it just tells you how strong the current trend is!
Surely this is much the same as momentum. Or indeed standard deviation.
 

seaman44

Recruit
Messages
4
well, i think among those indicators you've mentioned, RSI is active. pivot point is unreliable if not puting other indicators into consideration. in an uptrend, RSI at 85-90% and in a downtrend, RSI @ 25-30% are great reversal points. ------seaman44
 

Dennuise

Private, 1st Class
Messages
24
Bollinger bands

Bollinger bands. 2 st deviation as common setting and use 3 st dev when volatility start to exceed the common setting.
Trend testing : The lower,center, and upper bands represent S/R for the trend. Reversal off any band increases odds that price will expand in the reversed direction and return to the last band crossed /touched.
 

iggy

Recruit
Messages
2
exits

why exit a trending market?

...if you want to exit, use a 3-bar reversal. If you don't know what a 3-bar reversal is, google it.

ig
 

3BlackCrows

Corporal
Messages
83
If you truly want to cash in on big moves - use COT.

It can be used to signal the start of a major trend and also the end of one if you know how to read it.

Pivots are a great tool if you know how to calculate them properly, use them only at certain times and know the ins and outs about how price will react around them especially in a trending market (hint: price doesn't always just bounce off them!)
 

uktrader

Private
Messages
10
Cot

Hey 3blackcrows

Seems like you are becoming the source of knowledge in our forum :) I see your posts everywhere, so I hope you don't mind if I'm buggin ya with questions. Where is a good place to get these COT reports?
 
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