Best combination of Indicators

[blossom04]

Hi All!

Going through the various forums/threads though there is a lot of information on virually everything - I could not fiind anything that suggests a best set of indicators. So here goes ---

If for instance I start looking at a share today I would use the following check list -
1. Trend identification.
I use ADX - if the ADX slope is pointed upwards and value > 20 the stock is in trend (trend could be either up or down). On the other hand if it is pointing down or has peaked and is now going down it means the stock is in consolidation and Oscillators like stochastic could be used .

2. Resistance support levels
If the stock is in trend resistance support levels need to be idendtified so as to get entry / exit levels. Entry is at support levels and exits at resistance points. Stop loss placed slightly below res/supp depending on the direction of trend.

3. Overbought / Oversold
If the stock is in sideways movement we use Stochastic entering at oversold levels and exiting at overboughts.

4. Pattern analysis
Before sell buy activities we also look at possible chart patterns. Various triangle patterns indicate the stock is on the verge of moving out of a sideways movement.

5. volume
Strong volumes suggest that movement in the direction of the trend will continue, while falling volumes suggest a change is near.

Any suggestions anyone!

 

[Linus]

Hi,

Whatever you have outlined, if it is good enough for you, use them! I don't think there are a set of 'best combination of indicators' as it depends on personal taste and application. Don't forget weekly charts though!

Best regards,

Sunil Saranjame.

 

[blossom04]

Whatever the time frames one essentially goes through the same process - the net result of analysing the weekly chart enables you to take more effective decisions in the daily time frame - but the way the charts are analysed remain the same

Again personal choice may be a difference in choice of indicators but - for eg stocastic and RSI reflect the same phenomena - the basic purpose of measuring overbought/oversold condition is common


Rgds
Ashok

PS Thanks Sunil !

 

[jatayoo]

Hi All!

Going through the various forums/threads though there is a lot of information on virually everything - I could not fiind anything that suggests a best set of indicators. So here goes ---

If for instance I start looking at a share today I would use the following check list -
1. Trend identification.
I use ADX - if the ADX slope is pointed upwards and value > 20 the stock is in trend (trend could be either up or down). On the other hand if it is pointing down or has peaked and is now going down it means the stock is in consolidation and Oscillators like stochastic could be used .

2. Resistance support levels
If the stock is in trend resistance support levels need to be idendtified so as to get entry / exit levels. Entry is at support levels and exits at resistance points. Stop loss placed slightly below res/supp depending on the direction of trend.

3. Overbought / Oversold
If the stock is in sideways movement we use Stochastic entering at oversold levels and exiting at overboughts.

4. Pattern analysis
Before sell buy activities we also look at possible chart patterns. Various triangle patterns indicate the stock is on the verge of moving out of a sideways movement.

5. volume
Strong volumes suggest that movement in the direction of the trend will continue, while falling volumes suggest a change is near.

Any suggestions anyone!

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