[Rewards] Which technical indicators do you frequently use?๐ฐ
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I would like to invite you to share your technical analysis toolkit, and you will win Tiger Coins. You also obtain a chance to win commission- free trades
Newcomers to the stock market are likely to hear terms such as golden cross, dead cross, support and resistance, double bottom, etc. Do you know what these words mean? These are commonly used in technical analysis.โ
Technical indicators are used by traders to gain insight into the supply and demand of securities and market psychology. A fundamental analysis is used to determine whether a particular stock is a good investment, whereas a technical analysis is used to determine whether a stock should be purchased or sold.
I would like to invite you to share your technical analysis toolkit, and tell us which technical indicators do you frequently use and why ?
๐ขHow to participate?
It is very easy. Just leave a comment on this post, and describe which technical indicators do you frequently use and why ?
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Technical Indicators are useful tools to help determine whether it is a good time to enter into a position. I like to use Moving Averages (MVA) to determine the current trend of the stock I am interested in.
I like to compare the 50 day MVA and the 200 day MVA. I look for Golden Cross if I want to buy. A Golden Cross happens when the 50 day MVA crosses above the 200 day MVA, creating a BUY signal.
Conversely, if I want to sell, I look for Death Cross. This happens when the 50 day MVA crosses below the 200 day MVA, creating a Sell signal.
However for these indicators to work effectively, they should be accompanied by high trading volume.
Nonetheless, it is not wise to solely depend on Technical Indicators. I do my Fundamental Analysis first before I even look at Technical Indicators. Investing is a marathon not a sprint as I hope to achieve FIRE - Financial Independence Retire Early as my primary goal in life.
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it help identify a breakout from its trading range or retest the Bollinger Bands and come back inside itโs range
I used MA5 for US market as it is very volatile
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