Where do I start?

May I suggest a good book for basics of technical analysis based trading:

The technical analysis of stocks, options & futures - William F.Eng
 
Build Your Own Trading Interface (Part 21 of 22)

Video 21 includes some fine-tuning of the price data worksheet to improve readability, including adjusting column width, enlarging price chart size, 'hiding' early data so that the price chart is less cluttered, formatting the y-axis, and adjusting the spin button locations. Such adjustments will depend on your monitor size and can be tailored to suit.


Build Your Own Trading Interface (Part 21 of 22) - YouTube
 
Build Your Own Trading Interface (Part 22 of 22)

With the spreadsheet now practically complete, Video 22 shows how to insert a new line of price data and the method by which you arrive at the order/stop positions for the new period.

I have found that the spin buttons in OpenOffice work slower than those in Excel, so for the purposes of keeping the video as short as possible I have shortcutted the process by manually entering the larger numbers in the first instance.

The new order positions are then plotted on the price chart, and if you are actively trading you will adjust your order/stop positions on your trading platform to suit.


Build Your Own Trading Interface (Part 22 of 22) - YouTube
 
The S&P500 is showing an interesting pattern at the moment, which started to show itself after yesterday's open. Whilst all trades would still be taken from the filter calculation, the pattern does help to give you a heads-up as to probabilities.
 
Here's one I've not mentioned in the earlier sessions.

Again, I trade by calculation, but the chart patterns can give you indications of the probabilities ahead of time.

Look at the direction of convexity of the wave formations at different levels. The current retrace of the S&P500 since Tuesday evening (GMT) starts with a couple of 'humped' waves (excuse the language but at the moment I can't think of a better term), and then seems to switch into a droopy sequence, albeit still uptrending at larger wave level.

As I write, it's also just jumped quite a distance in a short space of time. This is classic wave formation which maps out clear patterns with most indicators, and of the type which Hurst coincided with in his 1970s study.

It can, however, be deceiving and you need to know when to get out at the optimum time. It's 'strength' can lull you into a false sense of security.

It will be interesting to see where this leads, as it does follow in the footsteps of some guiding trailers.
 
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