Technical Indicators Momentum

Hello you wonderful and intelligent individuals that make up this forum, i sincerely hope you are doing well.

I was kindly wondering when reviewing a stock, whether its for a long term or short term trade, there is lots of technical indicators that can be used that are helpful. There is so many indicators such as Oscillators, such as Relative Strength Index, Commodity Channel Index, and MACD Level. Further there is lots of different types of Moving Averages such as Exponential Moving Average (10) and Simple Moving Average (10).

I kindly wondered for determining the momentum for either a short term or long term trade, whether just learning what a few of these indicators mean is helpful please? Further or is it a case of the more of these indicators you learn, the more they can help you become successful by using as many as possible, or is a few still effective please? If anyone kindly has any thoughts on this i would be forever grateful and thankful for your support.

Sending you lots of good wishes and i truly hope you become massively successful. All the very best and take care.

Hi. Some people don’t really believe in chart analysis, some people are sceptical but look at it a little and some are firm believers. I’m a firm believer. People who use technical analysis often have their own preference as to which indicator(s) they use.

I think it is usual to understand what the different indicators do because they respond to different aspects of the historical price. Most indicators are lagging (they are based solely on historical data).

Although there is a very long list of different indicators, I think that simple support and resistance levels are amongst the most powerful (combined with trend analysis). It is important to recognise that support and resistance levels aren’t limited to simple horizontal lines - they can also be trend lines and increasing or decreasing SR lines.

Moving averages are also good. A lot of fund managers and institutional investors use the sma50 so that is a fairly significant moving average. My own chart analysis scripts plot multiple moving averages (I like some of the more complex algorithms because they are more responsive). When the price breaks a moving average you will often see that there can be strong price movements and depending on which ma line is broken it can signal trend reversals.

Some of the chart patterns (ie divergence, flags, cup and handle…) can also be good. I’m more sceptical about some of the candle shapes eg doji. By themselves they aren’t very reliable and at the moment I’m seeing some patterns predicting the complete opposite of what they general are thought to indicate.

One indicator worth learning about is RSI, as it shows divergence - google it.

Instantaneous or anchored VWAP is widely used too, but we don’t have it - see TradingView…
ALso we don’t have much Volume info.

Add to “levels”, High of Day and yesterday, and yesterday’s close.
You 're looking for several aspects to combine , for a more reliable indication.
Try youtubes by TheMovingAverage or HumbledTrader.

As a firm believer of technical analysis and studying it for a couple of years, its proved its worth and an amazing skill to have.

One of the main things I’ve learnt is to keep it simple, and also use the indicators that the majority of the market is using. As to read off the same hymn sheet.

I suggest studying the below, they are listed in order of my own personal importance when analysing a charts respective price action in relation to the charts tools.

Support/Resistance, Fibonacci levels, 200 sma, MACD, RSI, 50 sma

Understanding convergence and divergence of MACD and RSI are critical and very powerful too.