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Which indicator or oscillator is best for trading intraday long term short term

Posted by : Nifm
14 May, 2016, 5:41 PM
Which indicator or oscillator is best for trading intraday long term short term
Technical indicators are tools that provide to traders an indication about the movement or direction of the stock or commodity. These indicators are generally used as additional information before one takes a decision to buy or sell a share. They provide unique perspective on the strength and direction of the market. Indicators are based on the price data and volume of a stock that measure such things as money flow, trends, volatility etc.  An oscillator is an indicator that fluctuates above and below a center-line or between set levels as its value changes over time. Oscillator indicators have a scale- 0 to 100 or -100 to 0. Non-bounded indicators still form buy and sell signals along with displaying strength or weakness, but they vary in the way they do this.    Technical Indicators broadly serve three functions: to alert, to confirm and to predict. Indicator acts as an alert to study price action, sometimes it also gives a signal to watch for a break of support. A large positive divergence can act as an alert to watch for a resistance breakout. Indicators can be used to confirm other technical analysis tools. Some investors and traders use indicators to predict the direction of future prices.   • There are a large number of Technical Indicators that can be used to assist you in selection of stocks and in tracking the right entry and exit points. But it doesn’t mean that traders should ignore the price action of a stock and focus solely on the indicator. • Indicators are derivatives and not direct reflections of the price action. • While applying the indicators, the analyst should consider: What is the indicator saying about the price action of a security? Is the price action getting stronger? Is it getting weaker? • The buy and sell signals generated by the indicators, should be read in context with other technical analysis tools like candlesticks, trends, patterns etc. • For example, an indicator may flash a buy signal, but if the chart pattern shows a descending triangle with a series of declining peaks, it may be a false signal. • It is best to focus on two or three indicators and learn their intricacies inside and out. • One should always choose indicators that complement each other, instead of those that move in unison and generate the same signals.   Bull market tool kit application    Moving Averages — Buy the upside crossovers  RSI, and Oscillators— Buy oversold indicators and ignore the overbought indicators  Stochastic— Buy the crossovers to the upside; do not sell crossovers to the downside  On-Balance Volume— Useless as forecasting indicators, but viable as confirming indicators, since OBV curves would continually display new breakout highs  Elliott Wave — Buy breakouts of previous highs    Bear market toolkit application    Moving Averages — Sell the downside crossovers  RSI, and Oscillators— Sell the overbought indicators and ignore the oversold indicators  Stochastic — Sell the crossovers to the downside; do not buy crossovers to the upside  On-Balance Volume— Too late for forecasting, and non-effective as confirming indicators  Elliott Wave — Sell the breakdowns of previous lows    To more detail about these things JOIN NIFM, Call 9910300590 or visit our Website:   For Example see the attached file.


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