TECHNICAL ANALYSIS RULES
20 golden rules TECHNICAL analysis trader
Want to trade successfully? Everything you need to do: be in the proper position.
wrong decision during the bidding and will be reflected on your self-confidence, and on your wallet. During the day, you do not just going to have a choice. The absence of strongly developed system of decision-making affects your skills Trader: emotions get the upper hand, and you take the wrong decision.
Many players consider short-term trades in gambling. Acting at random, they just throw money at the market. Occasionally they are lucky big, and it strengthens their desire for easy money, but it does not help in making decisions. If you do not use any form of protective regulations, more experienced traders can easily beat and you.
Technical analysis provides an opportunity to work in the market, focusing on objective measures of price, time and volume of transactions. This is a disciplined trader and avoid reckless gambling behavior. It is necessary to control their emotions, manage risk. And then the short-term trades will be successful.
Market trends are repeated again and again. Science Trends allows you to create a system of rules for a successful game.
- Forget about the news, remember only the schedule. You are not so smart to predict how news will affect the price. The schedule is already incorporated information, what to expect from the news.
- Buy the first pullback from a new high. Sell ??the first pullback from a new low. Be sure there is someone who misses his chance.
- Buy at support, sell at resistance. All follow the same parameters that you and waiting for a good time.
- open short positions on a fast rise. But not for mass selling. When the market drops, short positions are profitable. Always be prepared to close them.
- not buy above the moving average or sell a moving average. See number 3.
- not buy stocks with high growth potential, if you can not quickly get out of them. Keep track of the market, if it will unfold, and you do not have time to time sell the shares, assume you're out of luck.
- rientiruytes breaks on prices for opening and closing. Play against the break.
- Trends test the point of the last support and resistance. Enter the market, even if you do not like it.
- Trade, following a short-term trends. Do not be a hero. Go with the flow, following the short money.
- Thinking about the market, forget what you were taught at the institute, and trust intuition trader.
- Sell at the second maximum, buy a second minimum. After a sharp rollback checking the maximum or minimum required stumble on the resistance. Expect a breakdown in the third or fourth attempt.
- Trend - your friend in the last hour of trading. An hour before the close of trading for high volume situation is unlikely to change.
- Avoid trading at the opening. You should not rush to the keyboard at the opening of the market. Can be trapped.
- 1-2-3-drop. Expect a reversal downward trend after the top, two lower highs and a double bottom.
- Bulls live above the 200-day moving average, bear below. Vendors will not let the price go up, if it is below this key moving average line. Shoppers support the market higher this indicator.
- I have a memory prices. What happened to the price when it reached a certain level? Most likely this is repeated again and again.
- activity declines after trading in large volumes. Burst of trading volume leads to the fact that both buyers and sellers fulfill their requests and leave the market at the time. Trends
- not turn around quickly. The development has been slow. At the first sharp drop are always buyers. And at the first sharp rise always sellers.
- bottom is formed more slowly than the top. Greed works faster than fear, the shares may gradually slow to sink under its own weight.
- beat the market - out of the game. You must pick up their money before they take away your.