So, I think this could be a really fun thread to open up here for discussion. I was originally thinking of setting this thread up in the form of a poll, but seeing as there are so many different technical indicators one can choose from it's pretty much impossible to put this up as a thread poll. So, instead I figured to create this in the form of a open-ended question. Before I begin with this thread though I would just like to start out by saying that as for I go personally, I actually do not use much technical indicators for charting nowadays as I once used to. Mainly because I found them to be a bit noisy, not to mention lagging. Never really found a real solid edge or advantageous if you will, thus I like to kind of keep my charts simple and not too busy. RSI, MACD, 20, 50, 100, and 200 SMAs, OBV and BB's. Just the real basic ones if you will. Seems to do the trick most times. Having put that out of the way now, I'm really curious to hear what some of you all use for charting indicators. We all have at least 1 favorite right? This does not necessarily have to be just one favorite that you like to use though. It could be multiple. And it also doesn't have to be an indicator per say, but could also be a technical overlay like Bollinger Bands, Ichimoku Cloud, Keltner Channels, Volume by Price, VWAP, and so on... In addition to posting your favorite indicator(s) if you guys would like to (in fact I would encourage this) you can also post actual examples with said indicators or overlays in action on your charts. Also, if you can include some rationale why you like to use said indicator on your charts, and how much success you've found using it in trading, as well as how long you have been using it. That would be beneficial for the readers out there as well. So, without getting into further ado here, let's hear what some of your favorite technical indicators/oscillators are that you all like to use for your charts! Looking forward to hearing some good feedback in here.
Cool thread, @Cy McCaffrey! I usually start my analysis with a simple look at the charts with nothing on them, going as far back as I can (monthly), then move to the last 5ish years (weekly), the last year (daily), the YTD or 3ish months (daily), and moving in to the intraday action over about the last five (5) days of trading. Then I'll repeat that process, but adding in the Floors & Ceilings, with Support or Resistance TLs. I find this just gives me a sense of how things have been going...and it makes me aware of any big, historical levels nearby the current price point. Once I have that general snapshot in mind, I like to overlay the 200, 50, and 20 DMAs. I'll check these same time frames (200/50/20) on the Monthly & Weekly, just to see if there is any correlation, i.e. the 20 DMA is at the same level at the 200 WMA. From this point, I won't necessarily go in any particular order, but I will hit the following: 1. RSI -- just to see if we are Over/Under bought 2. Volume by Profile -- is the price point bumping against any Low / High Volume Areas, within the POC, or near any No Volume Areas? 3. Linear Regression Curve with MACD Histogram -- where is the price point by comparison & how is the Histogram expanding or compressing? 4. Standard Error Bands -- is the price point above or below the smoothed line? Are the bands widening or narrowing? 5. TPO Profile -- this is a new one for me. I know it's not as detailed as Market Profile, but I have been watching to see how the RUT responds. Interested to hear if anyone else out there uses TPO Profiles -- always like to pick your brain! 6. Fib Lines -- I mainly glance at these at the end just to see -- ya never know Anyway, as you can tell I enjoy process -- so I go overboard! Again, cool thread!
Really the 20-day and the 200-week? Are you looking at their relative values to each other, or their relative direction to each other? Another question that kind of came to mind Hypothetically (not sure if you've seen this happen) what if a stock is bumping up against a Low Volume Area, and is under bought? Is RSI favored over volume profile? Or not really definitive? If price moves up into the low volume area, what kind of action do you anticipate if the stock will continue up, or what kind of action do you watch out for that signals stock will move back down?
@anotherdevilsadvocate Honestly I just randomly threw out the DMA / WMA. I do often see various MAs at various timeframes overlapping, however. And by that I mean a certain price point, say hypothetically 1355 on the RUT, coincides with a MA on a short time frame, but also a long time frame. Often times, I have found this sort of thing leading to either stronger support or resistance, depending on which way the movement occurred obviously. Your second question brings up an interesting point -- do certain Indicators trump others? I suppose one could answer that question by saying whichever indicator is being looked at by the most number of people will probably "win," since that larger body of traders will react accord to what their indicator is telling them! But I cannot honestly say that I've ever tracked that phenomenon -- maybe I'll start! I'm envisioning something in my trade journal, a score card perhaps? This section would depict each instances when 2x indicators conflicted, as in your hypothetical LVA acting as resistance vs RSI showing underbought, and which indicator "won." Fascinating!
