I am a Beginner Investor, and only know to Buy Low & Sell High.
I have found a Nice trend to trade on, and 2 companies which Oppose one another (BAC & SKF).
Now, when looking at the Numbers of Volume, Avg Vol., Net Assets & Yield, what determines what is going On with the Stock in that Company.
What determines how many people are Buying, Selling, and when to Buy or Sell?!?
I know that there is some Way to determine these types of Indicators, but I don’t know how to properly Use them.
If someone (an Experienced Investor) can tell me, or show me a Link to a Website that would Explain this, that would be Awesome!
I only want Legitimate answers Only!!
Thanks.
I am a Day Trader, if that helps any.
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, the market is just too random and unless risk is controlled over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
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VOLUME
In determining how many people are buying and selling Market Depth during market hours is helpful. I know that’s available in the Australian and London stock exchanges, but might not be available in the US markets
There’s no real way to know exactly how many people sold and how many people bought. All you can do is look at the Volume columns under the price chart to see how many shares traded hands
Don’t get carried away with volume indicators. You’ll just confuse yourself. The best volume indicator is volume itself. I use a 200 period moving average on volume, but usually don’t pay much attention to it.
I hope you’ve set a stop loss at where you think BAC’s resistance is if you went short.
A price moving average (MVA) is always good, but think of it as a guide. MVA’s are derived from price. They follow price, not the other way round. So prioritize price movement over the MVA. Don’t get carried away finding the perfect number of periods for an MVA.
Price is always the best indicator. Use candlestick charts. They’re the best chart type.
There’s no perfect holy grail to the stock market. You’ve just got to develop a system that works for you most of the time.
Go to Yahoo finance type in the stock symbol, on the left go to chart interactive click, technical indicators click, MACD click, click draw and look at the chart.
When the blue line is above the red line it indicates more buying pressure. When the blue line is below the red line it indicates more selling pressure.
You are trading.
What Kind of Trader you are? (Day or swing or position or investor)
Once you have answer to above,
–What Timeframe of charts you need to use?
(Anser depends on what Kind of trader you ARE)
—I use different startegy for day trading and swing trading.I use Ma 5 & MA 20 as my referenence for enty and exit timing in day trading (I use 15 Min chart)
–I use trendlines for my exit always in daytrading.
– i use ADX (10 or 14) to chek the strength of trend.If adx less than 20, it is ranging or choppy market.
–I use ATR to set up my stop loss.
–I also use Bollinger bands &RSI combination when i am trading choppy market.
–Always know chart patterns.
–always watch the volume.Volume is the best momentum indicatot.It follows with the trend.Keep an eye on volume closely.
If you need to ask more like, How to use strategy,Please feel free to contact me via my email . freeriver10@yahoo.com