What Technical Tools Or Strategies Are The Best?
There are many aspects of technical analysis, but we find areas of support and resistance to be among the most important.
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We have a question here from Kerrick that currently he doesn't really have a set entry style or technical analysis method or strategy that he uses to enter and exit trades. So thanks for the question, Kerrick.
Now, when it comes to technical systems or technical entries and exit strategies, the sky is really the limit on what you can choose. It can range from very, very simple, to very complicated. And when it comes to the technicals, we prefer to keep things as simple as possible, but obviously not too simple.
Now there's a huge array a huge array of technical tools that you can use. The ones that we use on a daily basis is the ones that you've seen us use in the videos. It's just basic support and resistance, psychological price levels.
If you have an upside bias, for example, but you're waiting for a pullback to enter, then that's going to be an obvious area for you to consider to take a look along on this trade. So the sky's really the limit you can add in things like a moving average to help you out with this.
Some traders add in things like RSIs and MACD indicators, etc. I used some of those things many moons ago, but I didn't find a lot of value in them, but there's thousands of traders out there that swear by it and that trade with those type of indicators on a daily basis, it really comes down to what you prefer and what works best with your trading style.
So for us, it's really the simplest stuff out there, support and resistance, using pivots, using ADRs. using psychological price levels. If it's a normal day trade, I'm never going to look to buy at the high or sell at the low, if I'm looking to buy this market, I'm going to find those areas of confluence on the charts. And I'm going to take an entry from that.
So no secret sauce when it comes to finding these types of entries, when it comes to, unscheduled or unplanned news, sometimes you might have an instrument where you don't have all of the the levels marked out on. And that is why I really like something like the, the daily pivot points when it comes to intraday, unexpected, short term sentiment bursts that you get in the market, those fast money moves to the up or the downside I normally just use the S1 and the R1 or the daily pivot, depending on where we are, of course for quick targets to the up and to the downside.
So at these current price levels, you can basically have two target areas. You can take off a first unit at this pivot, and then you can take off a second one at that pivot and now evidently, it matches up nicely with this overall support and resistance structure as well, but it just gives you a nice area, a quick target to use in terms of, short term support and resistance. Now, obviously, if you're already passed your R1 or your S1, you can always add in your S2 and your R2 as well. Great from a, just a pure intraday perspective point of view. And apart from that, you can also add in like the ADR. So the ADR is normally going to be a, based on a little bit of a deeper look back. So the pivots we use, obviously from yesterday's volatility for the ADR, you can use anything from two weeks to a month.
So two weeks trading days would be 10, a months worth of trading days would be 21, and that'll give you basically a month's worth. So over the last month, this is going to be your average daily range or volatility range for the EUR/USD. And that also gives you some nice, entry and exit targets to work from. So again, there's really no secret source Kerrick. The one thing that I would say, is that guaranteed if you're trading and you're trading successfully without, using any of these things, if you're just entering at market, with sentiment shifts and taking it off at key levels, or whatever you use, if it's working for you, don't force yourself to use a whole bunch of technical indicators. If they're not useful for you.
My only advice with this is keep it as simple as you can. And don't force yourself to use things if they're not useful for you, if you can trade without it, then by all means, you're more than welcome to do so. But don't force yourself to use methods that doesn't make sense or basically takes away from your trading success at the end of the day. So it really is very subjective, on what fits best with your particular trading style. So hope that helps Kerrick. Any other questions, please don't hesitate to let us know.
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If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
We have a question here from Kerrick that currently he doesn't really have a set entry style or technical analysis method or strategy that he uses to enter and exit trades. So thanks for the question, Kerrick.
Now, when it comes to technical systems or technical entries and exit strategies, the sky is really the limit on what you can choose. It can range from very, very simple, to very complicated. And when it comes to the technicals, we prefer to keep things as simple as possible, but obviously not too simple.
Now there's a huge array a huge array of technical tools that you can use. The ones that we use on a daily basis is the ones that you've seen us use in the videos. It's just basic support and resistance, psychological price levels.
If you have an upside bias, for example, but you're waiting for a pullback to enter, then that's going to be an obvious area for you to consider to take a look along on this trade. So the sky's really the limit you can add in things like a moving average to help you out with this.
Some traders add in things like RSIs and MACD indicators, etc. I used some of those things many moons ago, but I didn't find a lot of value in them, but there's thousands of traders out there that swear by it and that trade with those type of indicators on a daily basis, it really comes down to what you prefer and what works best with your trading style.
So for us, it's really the simplest stuff out there, support and resistance, using pivots, using ADRs. using psychological price levels. If it's a normal day trade, I'm never going to look to buy at the high or sell at the low, if I'm looking to buy this market, I'm going to find those areas of confluence on the charts. And I'm going to take an entry from that.
So no secret sauce when it comes to finding these types of entries, when it comes to, unscheduled or unplanned news, sometimes you might have an instrument where you don't have all of the the levels marked out on. And that is why I really like something like the, the daily pivot points when it comes to intraday, unexpected, short term sentiment bursts that you get in the market, those fast money moves to the up or the downside I normally just use the S1 and the R1 or the daily pivot, depending on where we are, of course for quick targets to the up and to the downside.
So at these current price levels, you can basically have two target areas. You can take off a first unit at this pivot, and then you can take off a second one at that pivot and now evidently, it matches up nicely with this overall support and resistance structure as well, but it just gives you a nice area, a quick target to use in terms of, short term support and resistance. Now, obviously, if you're already passed your R1 or your S1, you can always add in your S2 and your R2 as well. Great from a, just a pure intraday perspective point of view. And apart from that, you can also add in like the ADR. So the ADR is normally going to be a, based on a little bit of a deeper look back. So the pivots we use, obviously from yesterday's volatility for the ADR, you can use anything from two weeks to a month.
So two weeks trading days would be 10, a months worth of trading days would be 21, and that'll give you basically a month's worth. So over the last month, this is going to be your average daily range or volatility range for the EUR/USD. And that also gives you some nice, entry and exit targets to work from. So again, there's really no secret source Kerrick. The one thing that I would say, is that guaranteed if you're trading and you're trading successfully without, using any of these things, if you're just entering at market, with sentiment shifts and taking it off at key levels, or whatever you use, if it's working for you, don't force yourself to use a whole bunch of technical indicators. If they're not useful for you.
My only advice with this is keep it as simple as you can. And don't force yourself to use things if they're not useful for you, if you can trade without it, then by all means, you're more than welcome to do so. But don't force yourself to use methods that doesn't make sense or basically takes away from your trading success at the end of the day. So it really is very subjective, on what fits best with your particular trading style. So hope that helps Kerrick. Any other questions, please don't hesitate to let us know.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
