Background - Check large and medium sector of the market. It is important to create the & 39; image of the technique for the average (s) which it is part - if available, and & 39; consider the market sector chart.
Look all calendars - daily , weekly, monthly and beyond. Study long-term charts, and the volume indicator & 39; patterns before making decisions based on the daily charts. Look at the daily chart indicators and, if the intraday trading on a basis.
Trend considerations - Examining whether there is a method or consolidation trends visible on the float. Basically, it & 39; talking & 39; to keep an eye as to whether the market is trending upwards or downwards, as opposed to being in a consolidation or lateral trading range. If in a trading range " ", it is well-defined, broad or narrow, and how long it has disappeared? For example, its duration so long as & 39; state of the trend in terms of weeks and months? When a consolidation & 39; s rose as long or longer than a price before the movement of the same kind, be alert to any tendency change.
Overbought overbought considerations - in the long and short term. As a backdrop to a new technique, it is recommended & 39; be aware from day to day or week to week, the position relative price momentum RSI and MACD oscillators as for the daily, weekly, monthly and timelines. Be aware if the market or approaching & 39; s d & 39; a stock is overbought or oversold extreme, if & 39; momentum upwards or downwards has been strong, or has slowed significantly. If an extreme reading is within reach, or if the momentum measured by these indicators is at a standstill, it is important to follow the pattern of price and volume closely & 39; signs of a turnaround, while keeping & 39; to & 39; mind that there are many consolidations en route to a trend. A side door tendency to look at in terms of protecting existing benefits if the top of the price range already received close to the target prices. & 39; C may be time to try or & 39; increase profits protection stops.
Predictive Patterns - The prices and volumes. Make a determination of structures, if any, are developing, such as rectangles, flags, triangles, double bottoms, double header, and so on, with a possible position & 39; a partner minimum upside target . Volume is something to do with prices, in order to determine whether the reason is the volume & 39; confirming the action or the price and the price not.
Trendlines channels - Construction of all channels trendlines and the basic price is very effective for & 39; technical analysis and a study of the trend, even if you just use a straight edge to make more & 39; a mental check where form trendlines or get pierced. Although not an everyday occurrence, the return to a trend already broken often offers a second chance for a trade or investment entry.
Retracement calculations & 39; - markets and the various articles that follow, calculations for all bounce back, or 38%, 50%, or 62% of & 39; swing before a price is essential. A strong move which traces more than 62% at two-thirds or 66%, often suggest that the momentum will carry & 39; to & 39; before or high low.
Moving Medium - It is suggested that keep track of some of the basic and key moving averages, as the 21, 50 and 200 day moving averages. They can help confirm regard to other indicators current or future trend.
Oscillators - Another check is frequent in the relative position of at least one & 39; s & 39; oscillator type popular RSI indicators, slow stochastic, or both MACD daily and weekly or monthly chart Base. & 39; This is not just to see if they are at one extreme (overbought or oversold), the oscillators are a key indicator of the price dynamics. Of the daily charts, I have & 39; especially keeping track of RSI indicators with a calculation of the length of 13 or 14 and 21 days as well. In the graphs check the weekly MACD oscillator.
Divergences - L & 39; one of the great values of oscillators, and the volume of & 39; indicators, as well, is to highlight points when they diverge from the prices & 39; action, such as failing to accompany the & 39; prices to a new high. This kind of divergence is much higher when the market has been the trend over a long period and is, or was some time ago, which represents an extreme. These differences are not in themselves an indication of & 39; buy or sell, but to alert you to a possible reversal. This would then cause you to check where trendlines key moving averages or would be violated. The surprise is often the enemy of & 39; Action & 39; rapid market, as there is in the initial disbelief & 39; d & 39; a reversal. Preparation is written by Dave important.
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