What is the best technical analysis on charts for Day Trading? why and how is it best used?
Utopia аѕkеԁ:
yes I trade short term, I usually close out trades bу 4pm unless thеу hаνе ɡοοԁ EPS whісh wіƖƖ bе carried over thе next day-
I trade anywhere frοm 3- 20 x a day
yes I trade short term, I usually close out trades bу 4pm unless thеу hаνе ɡοοԁ EPS whісh wіƖƖ bе carried over thе next day-
I trade anywhere frοm 3- 20 x a day
Tags: General Trading
That is a very complicated question. There are so many different types and ways to trade that a lot of what you end up using depends on what you are trading, what your objective is (short term = 5 to 6 trades a day, longer term = 1 to 2 trades a day), what time frame your are trading (3, 5, 15 minute charts), etc. As I day trade futures for a living, I am going to give you a few things that I recommend as well as some FREE articles that I have written to help explain the concepts. These are for you to look over and are for information purposes only. My hope is that they will prompt you to do more research on your on.
First, I think that you need to look at trend lines. They are used by everyone and have a great use in determining support and resistance areas. Second, I use fibonacci levels to also determine where these support/resistance areas are as well. There many books out there that describe how to use fibs, and I will give you a link to an article I wrote at the end of this answer. Another very important tool I use are moving averages. Some popular moving averages that I use are the 34 exponential, the 20 simple and the 56 exponential moving average. Again, it is important for a trader to develop their own averages that they like.
As I stated when I began, there are so many ways to trade. These are just a few of the things that I have used over the last 20 years of my trading.
Here are the articles that I have written: Again there are free and for your use to become more educated about what is out there.
Fibonacci Levels – A Few Trade Secrets Revealed
Mind Over Markets – A Trader’s Road Map To Profits
A Tale Of Two Traders, Which One Do You Want To Be?
Day trading is the most frustrating and rewarding endoavor that I have ever done. I hope that some of the information that I have presented will be of help in your quest to become a day trader.
To get the above articles along with my daily updates with charts and commentary,all for FREE, go to:, and sign up for the free gifts at the bottom of the page, or e-mail me with more questions at:
Again, please understand that I am only giving you as much information at possible so you can start on your road to becomng a better trader.
Regards,
Ron Lewis
Comment by Ron — June 2, 2009 @ 12:03 pm
You may not want to pay too much attention to technical analysis. Studies have shown that it can’t be relied on as a predictor of asset price.
You’ll be better off using the “50% retracement rule” which is easier and more reliable. Google for it.
Comment by Michael M — June 3, 2009 @ 1:50 pm
If you are currently doing well, Then continue what you are doing. Don’t try to change anything that is working consistently
All the best!!
Comment by drtrade2005 — June 5, 2009 @ 10:30 am