MOVING AVERAGE By Guillen Rocher

When I was a new trader I never imagined na matututo ako ng Technical Analysis. Kapag nababasa ko pa lang yung mga technical terms at traders lengua nila gulong-gulo ako. Sabi ko sa sarili ko "Parang imposible"....😢

There is no impossible..

Minsan nagpost ako sa investing group (my first post) asking for help, I said....

" Sana po may magturo ng Technical Analysis dito, yung madali lang po sana maintindihan"..

Zeus' Strike And The Alignment Of The Stars

I had my fair share of profitable adventures with my linemen when
 dealing with 3rd or 2nd Liners. And I think it's about time I wrote
 and shared it to you guys.


Let's start it off with 

"The Zeus' Strike!"
The only lightning strike you'll be wanting to catch.

Now whenever my linemen, the moving averages, like the 20MA or the 50MA go below prices, 
I noticed that most of the time, a short term rally happens.

How to combine the right indicators and avoid wrong signals

When it comes to indicators, there are three classes: momentum indicators, trend-following indicators and volatility indicators. Knowing which one belongs to which category, and how to combine them in a meaningful way can help you make much better trading decisions. On the other hand, combining indicators in a wrong way can lead to a lot of confusion, wrong price interpretation and, subsequently, to wrong trading decisions. 

Indicator redundancy – seeing the same things on different indicators

Indicator redundancy means that a trader uses multiple indicators which show the same information; indicator redundancy exists if a trader chooses two or more indicators from the same category.

The screenshot below shows a chart with 3 momentum indicators (MACD, RSI and the Stochastic). Essentially, all 3 indicators provide the same information because they examine momentum in price behavior; you can see that all indicators rise and fall simultaneously, flip together and also are flat during no-momentum periods (red boxes).

The next screenshot shows a chart with 2 trend indicators (the ADX and the Bollinger Bands). Again, the purpose of both indicators is the same – identifying trend strength. You can see that during a trend, the Bollinger Bands move down and price moves close to the outer Bands. At the same time, the ADX is high and rising. During a range, the Bollinger Bands narrow and move sideways and price just hovers around the center. The ADX is flat or going down during ranges.