Ok... I realize I still have a LOT to learn when it comes to TA. What are some recommendations and resources to begin learning not only about how to choose an indicator, but to give you some understanding of how the indicator really works? Any books on the matter? thx -cj
trading for a living explains HOW to use the indicators. all the other books I read explained what the indicator did. my advice....pick 1, get comfortable with it and learn to trust it. some use MACD, others stochastics. I use only RSI-14 for intraday. (also volume) for end of day, I only use volume & candlesticks.
As you have already probably found, there are umtine number of indicators of which all have unlimited settings etc... which ultimately compute to a number which could be compared to a pile of straw or hay... Your task is to find the needle. A lofty task! My suggestion... fwiw... find a mentor... someone who you know will show you the ropes. I have personally found that learning TA is liken to learning a foreign language. Intense study from books will only get you so far... but you will never become fluent in the language without imersing yourself in the culture of that language. For me, TA and trading is the same. Communicating with someone with years of experience, and a proven consistent track record (keywords here are "PROVEN CONSISTENT") are key. But, while you are searching for the perfect mentor, the following website has some pretty good info: http://stockcharts.com/education/index.html Also, this site is excellent source of knowledge and source for mentoring: http://www.thestrategylab.com/IntradayMarketTendencies.htm Good luck to you... brother (or sister) trader!
The "right" way is to understand that indicator by itself is not important but framework. Guess that some will understand that after many years not withstanding that they will never never grasp that at all. They will read books over and over again about the old and probable new ones . I prefer so called market's action (patterns and volume if one prefers but it is too restrictive to say that since it can be patterns in abstract sense like in chaos theory) than indicators because it's more fundamental although it has been dismissed by "modern" TA gurus because it is so appealing to the mass public and they even pretend that indicators are more "scientific" because they are based on statistics - whereas academics have clearly showed that historical quotes exhibit no autocorrelation at all so that it is a lie to pretend that indicators are scientific in general : this just prove that they don't understand what statistics are about ... I will soon make a thread about that in relation in fact with the thread "Arcsinus law: distinguishing trend from persistency of chance" http://www.elitetrader.com/vb/showthread.php?s=&threadid=22256 . I must first finish the prob Faqs http://www.econometric-wave.com/faqs/probability/home.html.html (It has only two items at the moment I have more urgent things to do).
all i can say is get into multiple time frame fib levels . i have done the whole gammit of indicators and have found this the most extraordinary method of predicting future price moves and pivots. have a look at this site . it might help http://datafeeds.com.au/amtrade.html ........................ bris
That website is a mess - you should at least run spellcheck or have someone proof read before you start spamming. And, links should not take you to another website all together. Such as "Charts", "Bookstore", etc. You are moving the viewer away from your site, and you are lucky if they come back. Finally, what the hell are you selling? Data feeds, two chapters of a book, mentoring? It should not be that hard to figure out WHAT you are selling. Seriously, put more thought into it before spamming. You give people who use Fibonacci a bad name. I know several resources on Fibs - if interested PM me.
Realize that all indicators only come from time, price and volume. I think someone learning to use technical analysis should work with only a basic price and volume chart and use a few simple trendlines and a moving average. Once you can trade succesfully with the basics, then explore the indicators further. You'll have a much better grasp of what it is you are working with.
Looks like maybe you should be mentoring others!!! http://charts.cedrick.net/charts/qqq121503.txt I am going to PM you.
It's thrashing, at its finest.. Thanks for the posts guys, I have a lot to read up on and learn If I'm interpreting this correctly, a few people have told me to first understand the basics: Price and Volume charts. Once I've gotten good at interpreting PV, add a few indicators as "confirmations". No more than around 3-4. I have been using MACD, but I'm sure I haven't been using it properly. thx, cj
Achelis' book, available online (http://www.equis.com/free/taaz/index.html), is good for a general overview, and Elder and Murphy will give you some guidance, but when it comes to indicators like the SAR or ADX or MACD, you really ought to go to the source: the individual who created the indicator in the first place. In the case of the MACD, this is Gerald Appel. However, you do NOT have to spend a lot of money to study these analysts' works. Ask your local library about an interlibrary loan.