If you had to start over, what technical setup would you commit to?

[fuglaa]

I ask this question as I don't think indecision on technical indicators is that helpful, but there are a wealth of options out there. I don't believe that there is a "Holy Grail," so in the absence of that: If you could spend all your trading time with one consistent technical setup, what would it be?

Please don't feel limited to a format, however If it's helpful for organization: (ideally limited to one per class or fewer)


Structure class: (qualitative support/resistance aids etc)
Volume class: (avoiding low volume)
Volatility class: (avoiding low volatility, but not too delayed to miss out on moves (looking at you, ADX)
Cycle class: (Entry timing)
Trend class: (consistent directional bias)
Momentum class: (strength)
(Might be valuable to mention what underlying and term you trade.)

 

[HighBredCloud]

Trend class for sure...You can have the Holy Grail indicator but nothing beats a trade on a stock that is trending in one direction. It basically does all the work for you...All you need to know is when to get out and get back in from the pullback...I also think that there needs to be multi-time frame approach to trading...You can't just trade a 1 min and you can't just trade the hourly chart and be successful.

 

[fuglaa]

@HighBredCloud I'm more asking about specific instruments people would want to commit to long term if they were limited to one per class or fewer. More hours looking at one indicator and learning it's intricacies seems like quite an advantage.

Personally I've felt drawn to Donchian channels, as they aid with some structural reference points + great in a trend like most other indicators, but I get caught in chop and don't have significant "filtering" in place. Identifying ranging/consolidating markets as soon as possible (before the 3rd or fourth false signal), and being able to adjust strategy to a new context is on my list of next best things. Really I'd love to limit myself to 3 indicators (one that signals well in trending environments, one that signals well in ranging environments, and a "crossover" filter for identification), but I'm curious to see what people would commit to if they new they had a massive amount of time to put into learning the instruments intricacies.

 

[HighBredCloud]

@fuglaa The thing that not many people understand is that not all indicators work the same on different timeframes...Some are designed to work ONLY with particular timeframes to net the best result...For example...TMO indicator is an overall good indicator on most timeframes...But is it the best? NO...its laggy I would say on lower time frames as compared to RSI 5 SMA cross over...But take RSI 5 SMA cross over on a lower timeframe and it will whipsaw you around to a point where most of the time you will lose more than win. Switch it up a bit...and use the RSI 5 SMA cross over on lets say 15 min...and enter using TMO on lets say 5 min...now your chances are much better for a more successful trade.

This is to answer your question...BUT...take into consideration what I said in my first post. Find a stock that is down on the day and just keeps on falling...Much simpler to trade than ANY indicator out there. WHY? Because you're not fighting the trend...you're letting the trend do all the work for you without relying on the indicators...Multi Time Frame approach is a must. If you think you can only trade 1 timeframe with absolute knowledge of any 3 indicators trading any stock...you will be disappointed.

I have come to find that its really hard to beat algos no matter how much you know the indicator...best is to trade stocks that are not on the Wall Street Radar especially ones utilizing HFT...but that's just me. I am sure other will have different opinions on the subject matter.

 

[Trader Raider]

Because you're not fighting the trend...you're letting the trend do all the work for you without relying on the indicators...Multi Time Frame approach is a must. If you think you can only trade 1 timeframe with absolute knowledge of any 3 indicators trading any stock...you will be disappointed.

That is so true!

I have come to find that its really hard to beat algos no matter how much you know the indicator.

Retail traders will never beat the algos consistently. I agree with you that it's easiest (and most profitable!) to follow the trend. That prevents me from having to predict what price will do. I just follow what price is doing and get out when it stops doing that. If I can't identify a trend to follow then it's too choppy and time for me to protect my account by walking away.

 

[rovo]

@fuglaa The thing that not many people understand is that not all indicators work the same on different timeframes...Some are designed to work ONLY with particular timeframes to net the best result...For example...TMO indicator is an overall good indicator on most timeframes...But is it the best? NO...its laggy I would say on lower time frames as compared to RSI 5 SMA cross over...But take RSI 5 SMA cross over on a lower timeframe and it will whipsaw you around to a point where most of the time you will lose more than win. Switch it up a bit...and use the RSI 5 SMA cross over on lets say 15 min...and enter using TMO on lets say 5 min...now your chances are much better for a more successful trade.

This is to answer your question...BUT...take into consideration what I said in my first post. Find a stock that is down on the day and just keeps on falling...Much simpler to trade than ANY indicator out there. WHY? Because you're not fighting the trend...you're letting the trend do all the work for you without relying on the indicators...Multi Time Frame approach is a must. If you think you can only trade 1 timeframe with absolute knowledge of any 3 indicators trading any stock...you will be disappointed.

I have come to find that its really hard to beat algos no matter how much you know the indicator...best is to trade stocks that are not on the Wall Street Radar especially ones utilizing HFT...but that's just me. I am sure other will have different opinions on the subject matter.

How do you identify that a stock is down for the day and not just a complete trend reversal? It sounds like you identify pullbacks. Just not sure how to have confidence it's a pullback, and not going to continue down.

 

[madeinnyc]

A simple one! A chart that doesn't look like a Christmas tree is best!