Which TA indicators for beginners?

[-oo0(GoldTrader)]

John Hill

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First would have to be chart patterns. Try John Hill!

perhaps using moving averages ( I have never really considered MAs as an indicator) draw trendlines and spot support and resistance lines and breakouts. Above all try and keep it simple !!!!

 

[-oo0(GoldTrader)]

Hybrid Thread

Everybody is ignorant, only on different subjects. ~Will Rogers

Actually, I'm curious as to why karmit thinks he should study indicators at all.

The trouble ain't that there is too many fools, but that the lightning ain't distributed right. ~Mark Twain

 

[-oo0(GoldTrader)]

Wilder

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“New Concepts,” has to be basic reading before you start trading.

I would leave indicators until much later in your study,

Oscillators are a way to smooth the static out of chart reading. Important forces like momentum and volatility can be seen clearer using mathematics.

 

[-oo0(GoldTrader)]

How I made $2,000,000..

Darvas is probably best for a new technician on S/R (Support and résistance).

Learn about S/R and trendlines first

Trendlines are in essence sloping boxes. Angell is easy to understand on an overview.

 

[dbphoenix]

Darvas is probably best for a new technician on S/R (Support and résistance). Trendlines are in essence sloping boxes.

Darvas used a particular sort of S/R, i.e., swing points. However, these are only the beginning of S/R. Douglas provides a far superior explanation.

As to TLs, they are only occasionally boxes. They can be plotted as demand and supply lines a la Wyckoff, but are not consistently parallelograms.

 

[-oo0(GoldTrader)]

Macd

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MACD can be used instead of optimized MA s.

simple MAs are a proxy for trendlines (since they are, after all, just moving trendlines) and are easy to use for scans ("easy" as compared to trendlines)..

Macd works just as well and eliminates your adding variables that may work against your testing.

 

[dbphoenix]

MACD can be used instead of optimized MA s. Macd works just as well and eliminates your adding variables that may work against your testing.

True, MACD can be used, but whether or not it works "just as well" depends on what one expects from the TLs (most simply, to show the existence of, momentum of, change in, and reversal of trend). Even so, MACD adds more variables than using simple MAs.

 

[-oo0(GoldTrader)]

Lane's Stochastic

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I thought the most widely followed indicator is Stochastics?

I would suggest using the most widely followed.

New investors should concentrate on the basics of Lane's Stochastics.

 

[-oo0(GoldTrader)]

Bollinger Liftoff

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It’s kind of like

bending your knees before taking the plunge.

....... The main thing about..........Bollinger bands........ is the squeeze before lift off.

As opposed to when going down?

Splish!​

From an area of low volatility to a period of high volatility. Which way may depend on gravity, and how you hold the chart.

 

[traderix]

Bollinger Squeeze

If I want to use the narrow Bollinger Bands (Squeeze), as an alarm before a breakout:
which indicator could help me (trigger )?

traderix

 

[wwatson1]

Are you using metastock?, As there is a code youcan use in the explorer. I will have to fish it out for you.

 

[nine]

Though I didn't come here to argue . . .

Thanks for a quiet giggle db.

Karmit,

I suspect that everyone needs to do a number of things to get to the point where they find out what works for them. Like many I tried every indicator that metastock and then tradestation had to offer. My advice on indicators is to keep it simple (not many), stick with old ones (the new ones really don't do anything that new and you'll just waste time chasing the holy grail), and, while you look at the indicators to try and understand what price is doing at the same time. Check out volume too, as there may be some good clues in the price/volume relationships.

Which ones: moving averages, macds, rsi, stochs, cci perhaps. Look at divergence and reverse divergence and try to understand what they are telling you. Why does divergence fail so often? Why when rsi goes above 80 and then drops back is this so often the start of a trend not the start of a reversal. And when you think you understand them then try to build a trading plan around your understandings (there is a good trading plan thread on T2W).

I have used lots of indicators but have fallen back to a couple of moving averages that other traders seem to be looking at and a cci that I use for the occasional exit on divergence. Many here seem to use none but that may just be the current fashion - I can't tell.

When you are getting ready to trade your plan you might want to read Mark Douglas's "The Disciplined Trader" to help with executing it.

Good Luck.

 

[philhackett]

[Start with EMA's at 8 and 34 for a simple reliable and very reliable system.

Trade when the 8 crossess the 34 and stay in until your support and resistance lines are broken.

A moving average system is simple and successful.

If you like, put a FX trend below and trade when the 50 line is crossed.

Phil

QUOTE=karmit]Hi Folks,
Would like to know which top 4 (say!) indicators should you recommend for a
beginner to study ?
Thanks,
karmit[/QUOTE]

 

[SOCRATES]

Who said this, Homer the Phlosopher or Homer Simpson ?

 

[jcwonder8]

Who said this, Homer the Phlosopher or Homer Simpson ?

You're the philosopher, Homer is the poet, come on Socrates! Also ma crossover strategies for currencies which trend most of the time are a pretty effective start for beginners and a lot better than the overcomplicated indicator homebrew I kicked off with.

 

[mr_cassandra]

Two cents on indicators

There are a lot of them out there but many fall prone to what I call 'time frame myopia'. By this I mean that many oscillators judge stock price action comopared to a set time frame. As such they can give misleding signals when the stock runs in cycles less or more than their chosen time frame. Ema's on price don't suffer as badly and can make a nice addition.

Hi Folks,
Would like to know which top 4 (say!) indicators should you recommend for a
beginner to study ?
Thanks,
karmit

 

[hanhao]

anyone uses MACD divergence signals?
i think if you tweak the values and combine with other indicators it can be a winner

 

[-oo0(GoldTrader)]

Macd Optimization

Hybrid Thread
Macd Optimization
Optimization is great if the future is just like the past. In the case of Macd it works just fine as it is.

You will just be making adjustments along the top of a bell shaped curve. The major work has already been done.

Go study the tough ones.

anyone uses MACD divergence signals?
i think if you tweak the values and combine with other indicators it can be a winner

 

[samuelhogg]

Found these tutorial videos very helpful in understanding the basics. Shown using Telechart software but explains how they are created.

Understanding Moving Averages - Part I, The Basics
http://www.worden.com/training/default.aspx?g=posts&t=3631
Understanding Moving Averages - Part II, Using Multiple Averages
http://www.worden.com/training/default.aspx?g=posts&t=3918

Understanding MACD
http://www.worden.com/training/default.aspx?g=posts&t=3978

Understanding Stochastics
http://www.worden.com/training/default.aspx?g=posts&t=4726

Couple of good sites.
http://stockcharts.com/education/IndicatorAnalysis/index.html
http://www.chartfilter.com/indicators.htm
http://www.equis.com/customer/resources/TAAZ/Default.aspx?

 

[-oo0(GoldTrader)]

Help!


We could sure use your help on Wikipedia!

Found these tutorial videos very helpful in understanding the basics. Shown using Telechart software but explains how they are created.

Understanding Moving Averages - Part I, The Basics
http://www.worden.com/training/default.aspx?g=posts&t=3631
Understanding Moving Averages - Part II, Using Multiple Averages
http://www.worden.com/training/default.aspx?g=posts&t=3918

Understanding MACD
http://www.worden.com/training/default.aspx?g=posts&t=3978

Understanding Stochastics
http://www.worden.com/training/default.aspx?g=posts&t=4726

Couple of good sites.
http://stockcharts.com/education/IndicatorAnalysis/index.html
http://www.chartfilter.com/indicators.htm
http://www.equis.com/customer/resources/TAAZ/Default.aspx?