During my previous trading career in the Stocks, Futures, Currency and Commodities, I have come across several methods, techniques and many of Commodity Tips, Stock Tips and MCX Tips. Most at first glance emerge intriguing, but soon exposes, it becomes the evident that all those good lines do nothing more than decorate the screen and put a drain on your share market trading account.
In this blog, I am going to discuss with you one simple method that I have found to be worth for the purpose of selecting whether to be bearish or bullish (or neither) most freely traded markets. This simple technique is not meant to be utilized alone, but in conjunction with a timing technique for a real entry. In other words, you would utilize this method to first your market trend bias (bullish, neutral, bearish) and then you would then use whatever technique you have found helpful for deciding when to trade.
With my personal trading and that of my market trading clients, we can use turn dates called Future Dates (FDates) along with a simple graph or chart pattern for our trade setups. But we need to firstly decide whether we wish for to trade Sell setups or Buy setups, and this is based on our way bias. So let me now share one technique for doing this.
Using a WEEKLY and DAILY price chart, where each and every price bar represents a week of the trading, you want to apply an easy MACD indicator. Along with the good Oscillator and Signal lines, that you generally get with the MACD, having the Histogram on it is extremely helpful also.
The line we feel like to pay attention to is the main Oscillator line, which is the line that is typically above the Signal line when they are together, moving upward and is below, the Signal line, when they are both moving downward. You wish for to note if the Oscillator signal line is moving downward or moving upward. If it is moving sideways, then no market trend bias is generated.
Read also : Commodity Tips and Trading Plans of the Market
Suppose Oscillator line is moving upward. This is the primary signal indication that our bias may be bullish. To confirm this, we also wish for to note whether the final SWING is a bottom level or top level. If it was a bottom level, our trend bias is the BULLISH and we then only wish for to trade Buy setups on the regular chart or graph, when we get them. But if the final SWING is a top level, we remain neutral as our trendy way bias, looking for the trades elsewhere.
A SWING is, for those who may not understand this term, describe to confirm top level or bottom level. For a Swing Top level, you have a price chart, bar with a high-higher than the earlier bar high level, followed by a price chart, bar that is not very higher than at this bar, but makes a lesser low. This lesser low can come in as soon as the next price chart bar, or later on. When it does, that higher level high bar is called a verified Swing Top level. The reverse is factual for the Swing Bottoms, where you initiate with a lower-low bar, ultimately followed by a higher level-high bar.
Here is a good example of having a bearish market trend bias. You can note on the MACD, that the Oscillator signal line is moving downwards positions. If you also note, that the final confirmed swing was a top level, you have a bearish market trend bias and should see for only the selling opportunities on the daily bases chart.
I have used this easy & simple method for a few times with very good outputs. Of course, it is very important to have a good timing technique for your actual Buy & Sell setups. Without that the, this method would have limited time value.
Top Trading Principles::
Always Use capital you can afford to lose - Never utilize money that you cannot manage the losses. The trading & investing have to be tension free. Using currency that you cannot manage to lose introduces fear; this cloud your judgment and can paralyze you from taking advantage of opportunities accessible.
- Know yourself - be well disciplined, know your all weaknesses, control your every emotion. You have to be disciplined to stay alive in this 'business'. You require the discipline to stick to your trading method.
- Start small - Try and expert the mechanics at first. Most of people jump into the trading risking their all life savings. You have to initiate small and learn the basics. The real truth is if you can't build money using a small amount of the capital, you would never creating money with a big amount of capital.
- Don't over commit - A trader or investors once said to a fellow buyer & seller, "I can't snooze at last night because of my exact trade positions in the marketplace His close friend replied by saying "Sell down to a good level that would permit you to sleep at night".
- Isolate your market trading from the desire for profit - try to reduce "hope" from your trading technique.
- Don't form innovative opinions during market trading hours - do not let the day to day movements change your whole plan.
- Take a trading break - Trading each and every day may cloud your judgment.
- Don't follow the crowd - More than eighty percent of traders or investors in the stock market are not always correct. Identify what task for you and always stick to it.
- Block out any other opinions - Don't be influenced by the others once you form any opinion. Never seek for any of Stock Tips, MCX Tips and Commodity Tips.
- When you aren't sure, stand aside - it is OK to be in the money and not in the share market.
Article Source: http://www.articlesbase.com/day-trading-articles/commodity-tips-when-to-buy-or-sell-7207428.html
About the Author
Trifid Research is a SEBI registered Company in India, represented commodity, stocks, currency, futures and options. Uses the strategies, techniques and principles, he will provide Commodity Tips and MCX Tips of the world's top traders & investors.
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