Posted by jcomptonod on 21st of Aug 2008 at 09:03 am
Hi Zaru,
Chart reading is kind of an art that you develop over
time. Relying on one indicator is usually futile. (If I
was following one which I don't it would be the MACD and RSI). What
you are really trying to do is get the whole picture of the
price movement, for the time frame you are interested in. As
a position trader you should be trading with the larger trends
(except like now when you may be near major inflection or reversal
points). So, it's as much about establishing the primary, secondary
and short term trend as anything else. Trend lines help you
there. Looking for patterns such as ascending triangles etc. help
you gauge where you are at in terms of price trends and the
likelihood of the next move. The indicators help you refine,
confirm and deny the likelihood of those moves. Hope
this made sense.
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What is a good Buy trigger for a Position trader?
Posted by jcomptonod on 21st of Aug 2008 at 09:03 am
Hi Zaru,
Chart reading is kind of an art that you develop over time. Relying on one indicator is usually futile. (If I was following one which I don't it would be the MACD and RSI). What you are really trying to do is get the whole picture of the price movement, for the time frame you are interested in. As a position trader you should be trading with the larger trends (except like now when you may be near major inflection or reversal points). So, it's as much about establishing the primary, secondary and short term trend as anything else. Trend lines help you there. Looking for patterns such as ascending triangles etc. help you gauge where you are at in terms of price trends and the likelihood of the next move. The indicators help you refine, confirm and deny the likelihood of those moves. Hope this made sense.