Top 10 List of Technical Indicators

 

Before I get started with my list of must have indicators, keep this in mind. A trading decision should never be made solely because an indicator suggests it.

 

Combining technical indicators can certainly enhance the directional assumption for a particular trade but should never be used alone to determine market direction.

 

The most important indicator is and always will be price.

 

Second to price, the general state of the US and global economies affect markets. Having a feel for how things are shaking out at home and around the world can and will impact your trades.

 

But be warned, the news is fickle and one day they’re touting how bad everything is and the next it’s all a bed of roses. You’ll have to learn to understand what is good and bad on your own, that I can’t teach you. Primarily because I’m still learning it myself but also because it’s more of a general sense or compilation of all current financial events in the world at any given period.

 

I’ve gotten off topic, let me get back to our conversation on price…

 

Starting now and until your trading career concludes ask this one simple question when looking at every chart…

 

Are the bulls or are the bears winning the price battle?

 

That question is the most important one. If you can’t identify who’s winning the battle or when one may overtake the other there’s probably not a trading opportunity there. Just move on to another chart.

 

One more thing… I don’t really consider these technical indicators but “technically” they are;

 

– Support and Resistance

– Trendlines

 

I use both on every single chart. So I’ve added them.

 

Ok, with that said… here’s the top 10 list, in no specific order, of my absolute must have indicators…

 

Click to view more information.

 

1. PPS – Person Pivot

2. Implied Volatility Rank

3. Simple Moving Average (sma)

4. Exponential moving average (ema)

5. Bollinger %B

6. Williams %R

7. MACD

8. ADX

9. Relative Strength Index (RSI)

10. Fibonacci Retracements

 

That’s it! Learn and understand these indicators fully and you’re well on the way to taking bags of cash to the bank after each and every trade.

 

Have a question?

 

Ask me in the comments section below.

 

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