by User » Fri Jul 03, 2009 11:10 am
Forum transfer: Submitted by Alex on May 26, 2009 - 10:01.
Hm, ok. Look at price chart. What do you see? Can you see a trend? Can you tell which direction the market will move in a shorter term, in a longer prospective?
Now, you can learn to read charts by price action: using price patterns, support/resistance levels, contraction/expansion zones etc.
Or, you can choose in favor of indicators. With tens of thousands of different indicators, you have to prepare yourself to spend some time on figuring out which indicator to use, or you can read forums and see what traders use and discuss most.
For starters, I can recommend getting familiar with the following indicators:
1. Moving averages: EMA, SMA and WMA
2. MACD
3. Stochastic
4. RSI
5. Bolllinger bands
6. Parabolic SARThese indicators are the base of all basics. By learning how to use them, you'll get some essential exerience, which will help you to navigate through the maze of other indicators with ease.
Good luck!
Alex