Spotlight on Technical Analysis: Which Indicators Are Your Favorites?

[kingdee3]

Dive into the world of technical analysis. Discuss your favorite indicators, chart patterns, and how you use them to make trading decisions.

 

[CinFX]

I guess it depends on the goal one would like to accomplish.

I like to use Donchian Channel, Nadaraya Watson Envelope, RSI and MACD mostly.

 

[skrimon]

I guess it depends on the goal one would like to accomplish.

I like to use Donchian Channel, Nadaraya Watson Envelope, RSI and MACD mostly.

It's interesting that you use a combination of trend indicators (Donchian Channels), volatility indicators (Nadaraya-Watson), and momentum oscillators (RSI and MACD). This covers a wide range of technical analysis aspects, potentially aiding in identifying trends, volatility changes, and potential entry/exit points. However, be mindful that using multiple indicators can lead to conflicting signals, so it's crucial to have a clear understanding of how they interact and how you will interpret them within your trading strategy.

 

[Jonathan Lee]

When I use technical analysis, I prefer combining indicators with chart patterns to get a clearer picture of the market. Moving averages help me identify the overall trend, while RSI shows me whether a currency pair or asset might be overbought or oversold. MACD is useful for spotting momentum shifts, and I always check volume to confirm whether a move is strong or weak. For chart patterns, I pay attention to head and shoulders, triangles, double tops and bottoms, and flags or pennants. I never rely on just one signal; instead, I look for multiple confirmations. For example, if RSI suggests a reversal and a head and shoulders pattern appears, I take that as a stronger indication. This layered approach helps me set entry and exit points with more confidence and manage risk more effectively.