in swing trading, i use 1 month chart macd(12,26,9), stockastic(14,3,3), rsi(14). tell me if i am using the right chart and indicators with the right numbers. if i am wrong please tell me which one should i use.
another question is how do i know when the stock will bounce on a 1month chart.
Trading indicators are best used along with money management and good risk control, using tesnical indicators alone will not enable you to ne a successful trader, the market is just too random
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Default time frame for your stock chart analysis is based on your type of trading.
But whatever style of trading you have – stock day trading, swing trading stock or position stock trading – you must analyze more then one type of chart.
Anytime you analyze stock chart you need to see important levels of support or resistance. If you look into one stock chart time frame (say daily time frame) only and omit others, you are doing big mistake !
There is good solution.
Use 3 different stock chart time frames for your stock chart analysis.
* Your main time frame (like daily)
* One time frame with longer scale (like weekly)
* One time frame with shorter scale (like hourly or 4-hours)
Why it is important ?
There are two reasons:
1. You will see important support and resistance levels on larger scale then is your basic one.
2. Smaller time frame will help you fine tune your entry point and stop loss level for your stock trade.
So what are typical time frames used by successful stock traders.
1. Daytraders
* Basic chart …. 15min , 30 min, hourly
* Longer one … 240 min (4hours), daily
* Shorter one … 5min , 15 min
2. Swing traders
* Basic chart …. daily
* Longer one … weekly
* Shorter one … hourly or 240 minute (4 hours)
3. Position traders:
* Basic chart …. weekly
* Longer one … monthly
* Shorter one … daily or 240 minute (4 hours)
Personally i think indicators are fake too and try to answer this question , do wareen buffet or soros use the indicators when placing a trade ? if you can answer this question then you will understand your problem
happy trading