Best Indicators

[robertbanking]

Hello you very wonderful and amazing individuals that make up this forum. I sincerely hope you are having a nice weekend.

I please wondered i have been taking a short course on swing trading stocks over a few weeks and months. I know there is lots of indicators that can be used to gauge whether a stock is in an uptrend. Such as Oscillators, like the MACD level and Moving Averages such as the Exponential Moving Average (50). I kindly wondered what is the most important or most reliable to confirm an uptrend please out of all the indicators for a short to medium term position over a few weeks and months? If anyone kindly had any thoughts on this i would be forever grateful and thankful for your support with this, it would mean the world to me.

Sending you lots of good wishes and i truly hope you have a wonderful life and become massively successful. Look after yourself and keep positive.

 

[1nvest]

not a very good course if the swing trading course didnt tell you how to define an uptrend
show us what you are looking at, a chart that you would like to have traded with your preferred timeframe
Not all indicators can be applied the same across all timeframes with the same values

 

[robertbanking]

Thank you very much for getting back to me 1nvest that is very kind of you. I truly hope things are going well for you.

I was specifically look at Core Molding Technologies (NYSEAMERICAN: CMT) a month ago. I saw an entry about August 4th and over a months period, this would have done well. I was looking at this over a monthly timeframe, sadly i was not very confident and missed out on the trade. I please wondered if you could advise what the best technical indicators would have been for this setup please? If you kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Hope you enjoy the rest of your weekend 1nvest and that your continue to achieve massive success with your trading. All the very best to you.

 

[1nvest]

Hi Robert, thanks for the context
given your timeframe i would be using weekly charts. its hard sometimes to see a pullback on monthly charts.
I use monthly, but only because im in the trend for many many months, to years
Taking CMT as an example, a weekly chart will allow you to limit your risk much better, where the swings on a monthly can easily retrace 30-50% of its value. Your question however was which indicators determine the trend..
You mentioned a few, and your not wrong with them. The MACD is one of my favourites.

The one however that i would almost always advocate which is based on the success rate of the indicator, is where a stock is trading at its 52 week highs. It can be late in terms of trend starting and finishing, however you want established trends and then look for a pullback. in which case 52 week highs is the best indication (anywhere from 40week to 52 week to be honest will do the job nothing below for longer term trends)
once you've established that the trend is definitely up, then you can begin looking for pullback and reentry points.

Two indicators that do the same thing and measure 40-52 week highs/lows are
1) The Donchian Channel (setting of 40 week to 52 week)
2) The Aroon indicator (again setting of 40 to 52 weeks)
The chart below shows the Aroon. They both measure the same thing. I prefer the Aroon as you can scan easier using the Aroon where its at 100
Using the 52 week, the blue vertical line shows the trend is up, then i've indicated where my reentry points after the pullbacks would have been
The purpose of the Aroon simply is where the value of 100 is reached, a new 52 week high has been made. anything below 100 and that price is pulling back. Its a great indicator in my opinion.

This is of course just my view, others may differ. It needs to work for you, but from what you've said and your example, seems perfect
I hope this helps Robert, if you do have any questions feel free to ask

 

[robertbanking]

Thank you so much for your very fabulous and helpful reply 1nvest that was a wonderful response, thank you so much for your kindness.

I believe if i had your opinion a month ago i would have been more confident in my trading, what you have said makes perfect sense. I also appreciate you mentioning that a weekly chart will be more helpful for me to manage risk, thank you ever so much for your thoughts on this. I like what you said about the Aroon Indicator as this seems really good if the value of 100 is reached the new 52 week high has been reached, i will definitely implement this into my trading, thank you for your feedback on this.

Can i kindly please ask lastly two quick questions, firstly i use TradingView technical analysis section for the data on stocks, can i please ask what software you use for the chart pattern you have generated above and to help you conduct your trades please? I am also wondering if this could help you better time entry points for long term holding. For instance if you believed that Tesco PLC (LON: TSCO) has good financial prospects for the next 2-3 years could you use technical indicators for a good entry please? For instance if you bought Tesco in April this year the price would have slide from 280 GBX to 245 GBX, however if you had bought in August at around 251 GBX this had a swing upwards to 276 GBX to October. Can i please ask what technical indicator you could use for better timing entry points in the dip for long term holdings please? If you kindly had any thoughts on this it would be highly appreciated and would mean the world to me.

Thank you so much for your kindness 1nvest you are a wonderful person, i really appreciate the time you took to reply, it really has helped me enormously. Have a fantastic trading week 1nvest and all the very best to you.

 

[1nvest]

Hi Robert

Can i kindly please ask lastly two quick questions, firstly i use TradingView technical analysis section for the data on stocks, can i please ask what software you use for the chart pattern you have generated above and to help you conduct your trades please?

I also use trading view, that and sharescope. the indicator is simply the standard Aroon indicator. I changed the periodicity for weekly and changed the colour so that Blue is AroonUp and red is AroonDown. All standard

I am also wondering if this could help you better time entry points for long term holding

Yep, absolutely no doubt. As I mentioned i generally hold positions for many many months and the break of highs and lows is one of the main indicators i use to enter and exit. Would i have used it for Tesco? No. far better stocks to choose than one that historically goes nowhere for years at a time. Personally id concentrate on swing trading, master that, then come back to me for longer term.

All the best

 

[questtff]

Hello you very wonderful and amazing individuals that make up this forum. I sincerely hope you are having a nice weekend.

I please wondered i have been taking a short course on swing trading stocks over a few weeks and months. I know there is lots of indicators that can be used to gauge whether a stock is in an uptrend. Such as Oscillators, like the MACD level and Moving Averages such as the Exponential Moving Average (50). I kindly wondered what is the most important or most reliable to confirm an uptrend please out of all the indicators for a short to medium term position over a few weeks and months? If anyone kindly had any thoughts on this i would be forever grateful and thankful for your support with this, it would mean the world to me.

Sending you lots of good wishes and i truly hope you have a wonderful life and become massively successful. Look after yourself and keep positive.

Don’t fall into the trap of searching for the holy grail of indicators.. Good indicators should be on your chart, and they should infentify key support and resistance levels’
Check out this guy on youtube
https://www.youtube.com/channel/UCzHviDqYEpqftB3DC_R34Ig