This guide will dive deep into the topics and steps that can take any trader from a clueless chart reader to an advanced market technician. Audiences will be able to analyze trends and patterns in any market or market environment.
To start, this introduction will explore the types of technical analysis available to traders. It will detail its pros and cons and provide some practical tips that you can apply to your own charts. Readers will understand the value of technical analysis and how to implement it into your trading strategy/investment plan.
Some secondary indicators can be used for mechanical trading strategies, and fibonacci tools can be used in both mechanical and discretionary trading systems. By the end of this section, the reader will be able to use fibonacci tools to determine high probability retracement points and take profit levels, as well as an extensive understanding of the most prevalent indicators used by financial market traders.
The key to going from amateur technician to advanced technician is Market Context. The first step to understanding market context is the structure of the markets we trade. At their core, all markets are based on an equilibrium of prices trying to be located by buyers and sellers, so that is exactly what we are diving into for this section.
Learn about the patterns in the market that identify a shift in the general momentum of a charted equity or asset. These patterns are utilized to show when an equity or asset is no longer in a market trend, thus allowing for traders and investors to better comprehend the price action at play.
Elliot Wave Theory was invented by Ralph Nelson Elliott in the 1930s. This theory, or principle, is simply the acknowledgement of social and crowd behavioral trends in the market. These principles give traders and investors the ability to recognized patterns, corrections, and reversals in a market by identifying wave counts.
Each trader employs different strategies that utilize different time frames, each of which serving a different purpose. This guide will provide insight on the kinds of time frames used and the appeal to trade a specific time frame over another. You will learn about how your daily life/schedule will affect your trading strategy in terms of time frames.
In the first edition of this series we are going to be going over the notorious Head & Shoulders Pattern. We dive into its win rate, its uses, and how exactly you can trade it.
