Technical Analysis Strategies for Beginners_1

Post on: 18 Август, 2015 No Comment

Technical Analysis Strategies for Beginners_1

Inviato da admin On November 18, 2014 0 Commento

Technical analysis is the study of market data charts to determine the right time to buy/sell financial assets such as stocks. futures contracts. o opzioni binarie. Analisi tecnica is relatively easy to understand and master. making it popular with both experienced and novice traders alike. Tuttavia, most investors use a combination of both fundamental and technical analysis to make trading decisions. Con questo in mente, here are technical analysis strategies for beginners :

Trend-based Strategies

Trend-based strategies aim to capitalize on a prevailing market trend. which can be bullish. bearish. or ranging. Ad esempio, a trader may develop a strategy to buy stocks when the market is bullish and sell when market turns bearish. This is a simple trend-based trading strategy. Inoltre, some traders use complex strategies to stay ahead of the competition. Some of the popular indicators that you can use to develop trend¬¬-based strategies include the MACD ( Moving Average Convergence/Divergence ), parabolic SAR. and moving averages .

Momentum-based Strategies

A momentum-based strategy seeks to make money by buying/selling assets that are moving in one direction and in high volume. Investors who take this approach usually hold their trading positions for a very short period. ranging anywhere from a few minutes to several hours. In general. the aim is to ride the momentum and get out before it slows. Some of the technical indicators used by traders to develop momentum-based strategies include the CCI. the Relative Strength Index ( RSI ), and the stochastic oscillator .

Volatility-based Strategies

Technical Analysis Strategies for Beginners_1

Besides the strategies described above. you can develop a technical analysis strategy based on market volatility. It is important to note that such a strategy typically requires considerable experience to execute successfully. Remember. volatility is the change of an underlying assets price over time. When the markets are highly volatile. prices of assets tend to change rapidly within short periods. This means the probability of predicting the future price of an asset is usually very low. Tuttavia, there are traders who thrive when the markets are highly volatile because of the numerous trading opportunities available in such markets. Some of the technical indicators you can use to develop a volatility-based strategy include Bollinger bands ( BB ), Chaikin Volatility. and the Average True Range ( ATR ) to develop volatility-based strategies .

Volume-based Strategies

Volume is simply a measure of assets bought/sold by investors over a given period. You can develop a trading strategy based on this information alone. In general. bullish markets tend to register increased trading volumes and vice versa. Experienced trades only enter/exit trading positions if they notice a significant price drop/rise on large trading volumes. Useful indicators for creating a volume-based strategy include the Rate of Change ( ROC ) and the Chaikin Oscillator .

In conclusione, technical analysis strategies for beginners are typically based on trends. trading volume. quantità di moto, and market volatility. Such strategies are popular with many novice traders because they are relatively easy to develop and employ .


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