Now what is a trader without his tools? In this article I'm going to share with you all a list of common tools that every professional trader uses in their day to day tactical plans. In the future, I'll share with you which combination of tools I use to make my day to day decisions. For now, take a look at the list and learn a couple of them, understand them, and try to apply a couple of them. See what works for you. Telling you what you should use is not teaching someone to fish for themselves, it's fishing for them. And like I promised, I wouldn't do that to any of you...
Price
- Patterns: Triangles, rectangles, candlesticks
- Momentum: Relative Strength Index (RSI), Stocastics, MACD, Bollinger Bands
- Trend Identification: Trendlines, Moving Averages, Channels
- Liquidity: Market capitalization, turnover
- Participation: Volume, Cumulative Volume Index
- Breadth (aka Internal Market Indicators, Market Internals): Up Down Volume, Advance Decline Line, McClellan Oscillator, Arms Index, TICK, TRIN, BANK, Market Breadth
- Speculation: Put-Call Ratios, IPOs, Mutual Fund Cash Levels, Commitment of Traders Report
- Consensus: Bullish/Bearish Surveys
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