What are some of your favorite Technical Analysis tools and techniques?

tom

tom

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Administrator
This is an old thread from the old Capital Discussions forums. I'm moving it to Aeromir to continue where we left off.
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As the title says, I'm starting a thread so we can share techniques and tool ideas with each other. Here are some of my favorites:

Techniques
Tools
 
How about the ultimate in simplicity: The 200 day moving average. When an index or stock drops below it volatility increases and positive theta negative gamma trades will suffer.

There is a paper by Meb Faber on SSRN that details more if people are interested. I think it is the most downloaded paper ever on that site.

Posted by David Stewart
 
I do follow FuturesTrader71 (highly recommended) and shadowtrader on a daily basis. I also have volume profile up on my TOS charts to see where some of these levels, zones are. TOS has monkeybars which I don't like at all, having a real market profile platform is costly so I am sort of in between.
Having said that I can not say that my options trading is statistically better as a result. (yes probably I avoided some unnecessary adjustments at times but also made some reading the profile incorrectly)
 
Not that I have any opinion whatsoever about Neuroshell, but I found this link if anyone is interested. I'm not myself at all interested but that's just me.
;)
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http://traders.com/Reprints/PDF_reprints/WS_NST6.PDF

Posted by David Stewart
 
I too am coming from a market profile type background. I have had a change in my job/career, to where I am not able to fully utilize day-trading hours, so I am excited about learning more from this options community. I am fond of Market Profile, and will continue to monitor it...but very much looking forward to diving into the world of option greeks!

Posted by Jordan Crews
 
tom said:
As the title says, I'm starting a thread so we can share techniques and tool ideas with each other. Here are some of my favorites:

Techniques
Tools
Click to expand...
Thanks for the list. I use mt4 but had never heard of or tried three of the techniques above!! Interesting reading to figure out what approach they take.

One thing that I use a lot is pivot points. There is some difference in how they are calculated but the difference in calculated value is off by only around 5% (at least for the various approaches that I have seen). Would much like to hear about other people's experiences with pivot points.

Posted by Mike Roberts
 
tom said:
Would much like to hear about other people's experiences with pivot points.
Click to expand...

I like to use Person Pivots because they bias which support and resistance levels are in play based on the market. I think the power of them with an index like RUT is that they show expected boundaries based on what the market is doing (especially the pivot). The two things that i always keep in mind with pivots are: they are areas not lines, always wait for a shift in momentum/price before assuming that a support or resistance will hold (never predict that a trend is going to end just because it is up against a pivot s/r). I like to look at the Opex pivot and the weekly pivot.
 
Looks like the Ross hooks link is not working anymore
http://www.tradingeducators.com/index.php?option=com_content&view=article&id=67
It says the page is not redirecting properly.

Since I am trading options I can't say I have used any indicator consistently or reliably I look mostly at the price chart just to get an idea of which way the price is moving and how fast than I look mostly at the risk graph which tells me where I am as far as the p/l is concerned
 
I've started to look into Mark Fisher ACD methodology, explained in the book the logical trader. For those of you with TOS, I believe they have at as part of the thinkscripts.
 
vega4mike said:
I've started to look into Mark Fisher ACD methodology, explained in the book the logical trader. For those of you with TOS, I believe they have at as part of the thinkscripts.
Click to expand...

Elitetrader has a forum where they discuss his methodology and I think keep it decently current. I own the book and although I was never able to transfer it over to my options trading, it taught me the value of thinking of the market as ranges (thus my use of pivots). Especially indices, the key of course is waiting for momentum to actually change and not just assume an area (no matter how you come up with that area) will hold because there is a line there. The caveat of course is that if I was good at it, I wouldn't need to be trading complex delta neutral trades. But I have learned that with the trades discussed here, you don't have to be very good at direction. As long as you can learn not to get married to your opinion (easier said than done)

edit: here is the link
http://www.elitetrader.com/et/index.php?threads/the-acd-method.170318/
 
I'm a finance student who just start learning about trading a month ago.
I mostly use Elliotte wave, Fibonacci, and RSI (all the basic one).

I found this website is really helpful and they also offer free trading report :
http://tripstrading.com/

Posted by C_chot
 
There are so many technical analysis tools out there and it is very easy to get overwhelmed. At least some of the tools are complex in their underlying math, but easy to use. When using technical analysis to control buying and selling bereft from fundamental analysis try to keep the time scale smaller. Holding on too long can open you up to something unexpected.

Tools:
  • Simple Moving Average
  • MACD
  • Relative Strength Index
  • Parabolic SAR
  • Your Own Lines and Experience
Posted by Davidrete
 
Such a nice forum!!! Thanks for provides useful information. Technical indicators are great, but not discount the usefulness of your own perception.
Thank you

Posted by gauri sharma
 
Thechnical analysis is like t he rear mirrow of a car ....some are giving you a good image of the past others are just a good subject to make a living as "Guru",mentor or else...
But none is making any difference in telling you the road ahead.Options are the best tool around...giving you plenty of opportunity to trade for a living.But if you rely on technical tools to trade is like flying the space shuttle based on the oroscope.

Posted by Tony Moore
 
Not being a huge fan of TA especially for forecasting (for TA gurus this subject provide huge reservoir of topics) I say that looking at back mirror is better then looking only at blanked windshield. Just you must not full yourself (or let yourself be fulled) that back mirror view is the same as view ahead.
 
tom said:
As the title says, I'm starting a thread so we can share techniques and tool ideas with each other. Here are some of my favorites:

Techniques
Tools
Click to expand...

I've known Joe personally for many years and have found very helpful application on DiNapoli concepts. He's really put together interesting strategies around a Fibonacci approach. Using option spreads on directional structures for futures with TA has been productive although it can be a challenge at times. It's a nice mix to add on neutral managed positions when I need to satisfy my need on expressing an opinion.

Posted by Derek C
 
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