Different Technical Indicators ‘There are many different tecnleal Indeators availabe for traders. Alot of people stick tothe most popular Stochastic ST, ‘MAD and Bollinger Bands. These, and many ‘wellknown indicators, were the sublet of my prerous book ~ How to Caleulate 2 Popular ‘Techn Indias, ore thse poplar indieators. But inthis ‘ne book I wanted tose what othe ndestors areout there. I particularly wanted to look at ‘some ess common indicators. wanted 10 find ‘out how they wer caleulated and how good theyre ‘What discovered that many ofthese Inicators are super tools. They cover arange of ferent trading styles, From highspeed day ‘trading to multsear investment strategies, Allof the indintre festured inthis book Ihave strong pints that wil suit certain trading styles, Whether you like to rade breakouts, eves, woatliy oe volume there are {nleators that wil sus your system. ‘Theinicatorsin this book ar ese ‘commonly use, but they are not obscure. In most cass they have been published in books and Journals. Man ofthe indicators were ‘developed by professional traders with the sole {intention of anpoving their profitbity- In other eases they are traditional wading spproaches that have been used for many years, Whichis the best indicator? ‘Thebes indeator ean individual preference. It depends on you trading il, {ennperament and isk tleance. Ifyou are a ‘rend trader, ome indicators wil gt you into moves oaty, before the crowd but with higher riskof itr. Other indicators wil et 90 relatively late, wen the trend is confirmed You can make money using either approach Different indiestore work well when the market {s tending and others work wel when itis suckin a range How should I choose the indicators Askyoursle what most important to you? Do you want to take ey the very best tng opportunities? This approach is ike a ‘rapper lying in wait for their prey, These aes do not our very frequently but they have a igh chance of sucess Alternatively, you might want to make sure you ae in position to profit from every ig ‘we. As soon asthe market shows strength or ‘weakness, then you takea poston to cover the ‘move. Thls approach wil Inevitaby ead to some whipse trades bt it wil ensure that you do not miss ont onthe best trade of the sear, ‘Thebes indicator wil also depend on your trae management appeoie Do you wan a ‘have multiple wade entry systems or are you satisfied witha single method? Maybe you ‘want to add oa trade the market moves in ‘hat diection Alternatively, you might want to ‘use limit orders to increase your positon size at beter rie. You may want an ineator that ‘wl give you signal when to take profits and ‘when to take a oss ‘Tey using diferent indicators. Put thom on achartasee how they perform unde diferent ‘market conditions. No ndeator works wellin ll situations, be prepared to ty diferent approach when the market changes,Any trader that regula spends ime testing historic data wil improve their Using Excel to derstanding ofthat market all matt are Aferen They each ave ther cn gue and Program Technical ‘hurneteratice Profeasional traders know the : bakes tha they tede intimately Indicators Tacktosts and Statistica Analysis Histor rice and volume data avaabe ror any peopl the mot important forerory tet We can se th tao reason program techn nator to aly pst eb, sty rice aton aed Ieee thertading tee. ‘oaks informed predictors about theatre posrenisnimnde eer eyereseeet fxuisagretiolfor handing numeral regulary wea eh intr you cre data hase gerangeofmatematealand fair nih t You how how tends tomove logical fanctons that enables test are 2nd when it doing someting unusal When nts of ata ver you ert run bacaet using snd, Using Excel corres wil speed up our ‘you will get an even deeper understanding oft snatjsis One weave automatedihe proces ‘When yu have run tests on lifeent marets twecan change vals and tt ferent and diferent parameter you wil se another ‘options. We can refine or widen the side ofthe indicators that you use every day. panes Indatrs ae lsousefl toa ont statistical analyses ofthe markets. You ean use Excel before, dont wry, Twill explain ‘them to answer questions relevant to your ‘everthing as the book progresses, You will be ‘mading system sch ae re range reversal amazed at how simple iso use functions and ‘uades historically moe key to occa dang program your own indicators. You wil be able the quit summer months? are range tohack the indieators take what you want ad breakouts mor likely to succeed in September, discard the rest. ‘October and November? Does a eclne in ven Ifyou have no tterest naming voatity suggest thatthe markets more likely ow to program the indstrs yourself, you to change direction? ‘ill beabieto use the spreadsheet and find Using Excel ‘many tips and suggestions fr how to trade ‘This hook s designed to be used by Fxee with them. Deginness as well as experienced users. As each indeators introduce, the calculation steps [About the Caleulations ‘il be broken down into chunks ach indicator as bea calle sing ‘Yu may find that you learn new ‘he most popula tiethod. Homeve, there are ‘leulations nd fantions that wil be multiple ways tocaleuate some ofthe ‘spplcable in other aitastions Twi introduce {ncators. This means thatthe ealeultions the formulas in way that wil ep ull up ‘may not be exactly the same as ina particular the sil that are nese, coe of charting sotare you have never even used a fanetion in For acl calculation stp I wil ive theformula for the fst col Thisformulaiscopied _indeebetwoen 2010 and 2014 Inthe oven tothe cells below by regging down the spreadsheet Column A contains the Date, square at the bottom right hand comer. ‘Column 8 contains the Time, Column CF In this book! provide an explanation of ‘contain the Open High, Low, Close, and ict ep ta eau eae tc (Column G has the Volume, The ealeulations for readers wil be ale to follow the sesght ‘the indicator begin in Column forward explanations that give, ‘Terminology About the Free Spreadsheet Most readers of his hook wil e familar As ender ofthis eBook you ct ‘withthe trading terms used. dovnload a spreadshet fr tee containing all ‘The terms bars, conde and periods all ‘the data and formulas. Just click on hislins refer othe same thing single time period. and provide an emt adres, Once you have Bars or eanles will normally be used when I ‘Signed up an emai wil be seat to you with the amrefreng toa ehart and periods wll lovmnlead link The emai sent atonaically ‘normally be used when 1am refering othe land normally takes about an hour. Ifyou have ‘aleulation and the sprendsheet ‘ot received the emai please check thas not Slate tab asain slots gone to your spam flde.1'you have ay Spreadsheet Packages problems or sil have nt reeived the email, {have wsed Microsoft xe forthe see conte me at Ini czamples bo the formal and pines in ‘Thespreadshee ss data forthe SP 520 tise wl workin any spreadsheet sofort. Impulse Indicator ‘Theimpulse indicator was developed by Alexander Elder and uses a combination ofan ‘Exponential Moving Average (EMA) anda ‘Moving Average Convergence Divergence (MIACD) The indeator was designed o take vantage of fastsmoving markets. However, 2s Til iease later we can change how we use ‘the indicator depending on the market ype Dr. Her has this to say about momentum trading " [Moment trading] is best suited for young people with strong hunting instinets, ‘capable of abandoning themscves tothe amen [alo] requires the cold detached Aisne ofa profesional card counter tna asin.”