The Most Valuable Technical Tools for Discretionary Traders

Discussion in 'Technical Analysis' started by cpo, Sep 26, 2002.

  1. cpo

    cpo Guest

    I will start this thread about the most valuable technical tools for discretionary traders.

    In my experience, I have found that these are the most valuable technical tools (the order is not relevant):

    Price action, on candles;

    Volume and open interest;

    Exponential moving averages (market flow);

    The Dow Theory (different time frames and trends);

    Trendlines (breaks);

    Classical chart formations (classical plays);

    ADX (early trend signals);

    MACD (trend following);

    Slow Stochastics;

    RSI; and....


    Well, that's all.

    Which tools, patterns or theories do you feel are worth the effort to study? And which do you think are the most relevant on the "hard right edge"?

  2. LOL... I'll start with the conclusion to start off with. Anything works if you make it work for you.

    One thing nice about real trading is that with any technique you use, you'll start to get discretionary views of it. This is a very weak sense of mind you get with paper trading.

    For me it's a trading system signal. I started purely following it but as time passes I started to get discretion about what signals will work. It's like, "Hmm... this signal seems like it won't work... but let's see how it goes." or "Ah-ha... GGGOOOOODDDDD SIIGGNNAAALL!!!!" I can do that with a system that I create, but can't seem to do it well with what others wrote. Well, it is explainable because I know the ins and outs of the system itself so it's easier for me to say, "Great setup for this signal!"

    So there's the conclusion.

    But here's what I can add. For technical analysis, the basis of all analysis is price and time(no not in a Gann sense). Let me reword that... Time of Sales. If there isn't a record of when a certain price was traded, the analysis wouldn't be valid. What's a chart or a tape without ToS? So I'd go into chart reading or tape reading. Tape reading the ToS and volume has helped me a lot.
  3. I would be interested in knowing what moving averages most of you are using for your day trades. Such as 20 and 200 simple or exponential and so forth. :) Carol
  4. I took the post out... found it irrelevant.
  5. cpo

    cpo Guest

    Well, perhaps I am off the mark. Indeed the initial post can be very "discretionary". :p

  6. cpo

    cpo Guest

    :confused: What were we talking about?

  7. Tape Reading and Chart Reading is a technical skill... well, at least for me... hrmmm...

    I can trade only with a blank chart or only a ToS to an extent(not so efficient by doing only that but I can make some money off it)... am I not technical enough?

    What did you think when I mentioned chart reading or tape reading?

  8. I think I'm on the topic... Ahh... disregard my post if you feel it isn't... my bad.
  9. cpo

    cpo Guest

    The thread is about how you do discretionary Tape or Chart Reading. At least, I suppose.

    So, a discretionary answer is O.K. :)

    It sounds like, from your point of view, that pure tape reading is the best way to go. Right?

  10. Interesting post..... your list does not include an oscillator. To me, these are a key tool, which work in conjunction with some on your list.
    #10     Sep 27, 2002