I mostly use price charts for determining when to enter and exit my swing trading setups.
This is otherwise known as "technical analysis".
Price charts are more than just current and historical references for a stock's price; they are also visual representations of the opinions of all active participants for that stock.
This is an important concept to grasp.
If something important (positive or negative) is going on in a company, someone knows about it.
If they know about it, they are going to act on it, and if they act on it-that is, place trading orders for that company's stock-it will be reflected in price.
Since price is the indicator everyone uses to keep score in the market, this is what I mostly pay attention to when it comes to money management, entries, and exits.
I allow the price-sensitive rules of my methods to dictate all actions.
All technical indicators or methods attempt to measure or capitalize on one of these stock-price occurrences.
With no fewer than 10 different ways to measure each one of these occurrences, you would have a minimum of 40 different trading indicators, with more than 3,628,800 possible combinations.
This is also how some traders fool themselves.
They create their own indicators, find a consistent pattern, and believe they have found something that nobody else knows about.
But in fact, they're measuring the same price occurrence that others are measuring, only in a different way.
You can have success at swing trading as long as you never forget that price is the only reality.
This is otherwise known as "technical analysis".
Price charts are more than just current and historical references for a stock's price; they are also visual representations of the opinions of all active participants for that stock.
This is an important concept to grasp.
If something important (positive or negative) is going on in a company, someone knows about it.
If they know about it, they are going to act on it, and if they act on it-that is, place trading orders for that company's stock-it will be reflected in price.
Since price is the indicator everyone uses to keep score in the market, this is what I mostly pay attention to when it comes to money management, entries, and exits.
I allow the price-sensitive rules of my methods to dictate all actions.
All technical indicators or methods attempt to measure or capitalize on one of these stock-price occurrences.
With no fewer than 10 different ways to measure each one of these occurrences, you would have a minimum of 40 different trading indicators, with more than 3,628,800 possible combinations.
This is also how some traders fool themselves.
They create their own indicators, find a consistent pattern, and believe they have found something that nobody else knows about.
But in fact, they're measuring the same price occurrence that others are measuring, only in a different way.
You can have success at swing trading as long as you never forget that price is the only reality.