Stock Trading With Technical Indicators | MACD, RSI & More!
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- Discover how to analyze stocks with candlestick charts to perform technical analysis
- Strategically trade the stock market with over 20+ technical indicators
- Learn to identify trend reversals, overbought / oversold levels and divergences
- Analyze stocks with indicators such as the MACD, RSI, moving averages and more!
- Laptop or computer with internet access
- Basic understanding of stocks & candlestick charts
Are you ready to learn over 20+ technical indicators to strategically trade stocks?
Welcome to the 'Stock Trading With Technical Indicators | MACD, RSI & More!' masterclass!
Proven Stock Trading Strategies
Learn how to identify winning trades with technical indicators.
This is your guide to understanding technical indicators for trading the stock market. Discover how to analyze stock charts with technical analysis, and implement over 20+ technical indicators that have been proven to work for predicting stock price action, direction and trends.
Technical indicators (such as the MACD, RSI & moving averages) have been used by traders around the world to strategically analyze and trade the stock market for decades. Follow along as you learn some of the most popular technical analysis strategies, and how to implement technical indicators to make more educated, calculated and profitable trades!
Discover how to analyze stocks with candlestick charts to perform technical analysis
Strategically trade the stock market with over 20+ technical indicators
Learn to identify trend reversals, overbought / oversold levels and divergences
Implement proven stock trading methods, such as moving average and MACD crossover strategies!
And much more!
Technical Indicators For Stock Trading
Place smarter trades and minimize risk with technical indicators.
Whether you are a beginner looking to learn technical analysis strategies for stock trading, or an experienced trader that wants to implement new technical indicators for stock analysis, we got you covered. The stock trading strategies we discuss can be used for any trading style, including day trading, swing trading and even strategic investing.
Technical Indicators Include:
Ease Of Movement
On Balance Volume
And many others!
By using technical indicators when analyzing stock charts, you will be able to find the best entry / exit points, and identify the most profitable trading opportunities!
Time To Take Action!
Learning how to trade stocks takes experience, and it will take some time to develop your technical analysis skills, so take action and enroll today!
I encourage you to take a moment to view the free course preview videos, and browse through the curriculum so you can see everything we will be covering in the course.
When you enroll in this course, you will finally have the tools you need to implement technical indicators, and strategically trade the stock market.
Enroll now and get started today...
See you inside the course!
- Beginners looking looking to learn technical analysis strategies for stock trading
- Technical traders looking to implement new strategies for trading the stock market
- Fundamental traders looking to learn how to trade stocks with technical analysis
I will be guiding you through, & demonstrating tons of different technical indicators, so you can learn how to technically analyze & trade stocks. Learning how to use technical indicators & overlays will allow you to make highly calculated price & trend predictions while analyzing stocks.
You can gain insight into the future movement of a stock price, which will allow you to select better entry and exit points. If you are new to trading or a fundamental trader looking to learn technical strategies, learning how to use various indicators & overlays can help you make more educated, calculated and profitable trades.
Technical analysis is actually a very broad term, which includes hundreds of different trading methods & indicators based on mathematical calculations.But if we break everything down individually, step by step, you will begin to understand how to analyze & use this data to make educated trading decisions.
Technical analysis can be viewed simply as market timing. Using multiple techniques, strategies and indicators, traders attempt to time there entry & exit points for profitable trading. The more technical analysis strategies you become familiar with, the better you will become at recognizing & capitalizing on various trading signals.
Technical analysis can cover a ton of different topics, but in this course, we will be focusing on using various indicators & overlays for technical stock trading. Both technical indicators & overlays can provide you with a detailed look into the price movement of a stock, and help you to predict where the price may go next.
In order to be a successful technical trader, you need have access to the charting tools you need in order to perform technical analysis. There are dozens of different trading platforms that have charts and charting tools available for you to use, but some are not as good as others.
Technical indicators are simply mathematical calculations & stock data, typically applied to the price and / or volume. Using technical indicators, traders seek to identify a stocks price movement and trends using past data, in an attempt to capitalize on these signals.
Technical Indicators are best used when combined with other indicators and signals, but in this section, we will be going over each indicator individually, so you can understand how to analyze and use them. Many indicators are very similar to one another, but use different elements to calculate their data
Some indicators are better used for certain setups and situations than others, so it’s important to become familiar with multiple indicators for technical analysis.
MACD stands for moving average convergence / divergence oscillator. It consists of the MACD Line, the Signal LIne and the Histogram.
On a day chart, the MACD Line is the difference between the 12 day and 26 day Exponential Moving Averages of the stock price. The 9 day Signal Line is the Exponential Moving Average (EMA) of the MACD line itself.
The MacD Histogram is the middle line with the vertical bars on either side, and is calculated by subtracting the signal line from the MACD line.
The Ease of Movement Indicator provides insight into the relationship between a stocks volume and price change. The EOM can help determine the amount of volume it would take to actually move the stock you’re analyzing. If the stock price is moving up on low volume, the EOM values will be high on the scale. If the price moves down on low volume, the EOM will have a low value. If the price is trading sideways or requires massive volume to move the price, the EMV will be near the zero level on the scale.
The Accumulation \ Distribution Line is a momentum indicator that relates a stocks price to its volume. It is calculated based on the notion that the more volume a stock move has, the more substantial the move will be.
If the Accumulation \ Distribution Line indicator is moving up on the scale, this means the stock is being accumulated by buyers, and a majority of the volume is fueling the uptrend.
If it moves down on the scale, this shows the stock is being distributed by sellers, and the majority of the volume is pulling the stock down.
When trading with the Accumulation \ Distribution Line, you can look for divergences to find good entry and exit points.
The Mass Index is used to help traders predict trend reversals by comparing previous trading ranges. The Mass index is a great indicator to use for identifying trend reversals. It is calculated using the varying ranges between a stocks high and low prices.
If the Mass Index is moving higher on the scale, this indicates the stock’s range is getting wider. A lower Mass Index indicates a narrower range. When this price range widens, this is a signal that the trend will probably reverse.
The OBV indicator is based on a cumulative total volume, and relates a stock's price to its volume. Using the On Balance Volume, you can determine whether the volume is moving into or out of the stock.
A positive or negative value is given to the total volume for each trading day, depending on whether the price is higher or lower on that day. If the stock closes higher on the day, the volume will be positive. If the stock closes lower on the day, the volume will be negative.
The RSI shows how strong a stock is moving in a current direction, and can give insight to when a stock is either oversold or overbought.
The RSI is calculated using a stock’s closing prices over a selected period of time. On a day chart, the RSI typically represents a 14 day period, but this can be changed for short term or long term trading insight. It’s plotted on a vertical scale from 0 to 100, and is typically located at either the top or bottom of your candlestick chart.
The RSI is considered overbought when above 70, and oversold when below 30.
The Money Flow Index can provide insight into the approximate dollar value of a given trading day. The more money that is traded, the more enthusiasm is seen in the market which means more shares are traded.
When the MFI reaches 80 or above, this is considered to be the overbought area. The MFI is considered oversold when in the area below 20.
The stochastic oscillator is a momentum indicator which uses a stocks support and resistance levels. The point of a current price compared to its price range over a selected period of time is called the stochastic. This can be used to find pivot points by using the relationship between the closing price of a stock to its price range over a selected period of time.
When viewed on the candlestick chart, it is displayed on a scale using two lines. The main indicator line is called the %K. The other indicator line is called the %D, and is actually the moving average or the %K.
The Ultimate Oscillator indicator attempts to correct the errors that occur with most oscillators when used over varying lengths of time. An oscillator analyzes buying and selling pressure using closing prices within the selected range. They can be used to determine the right times to either buy or sell a stock.
Typically, price oscillators compare a smoothed priced with previous price periods, but the value can vary widely depending on the time periods that are used. To help correct this issue, the Ultimate Oscillator was developed, which actually uses three oscillators of different time periods.
The TRIX indicator is a type of oscillator which uses a stocks exponential moving average or EMA. The TRIX momentum indicator shows the percentage rate of change of a triple exponentially smoothed moving average of the stock closing price.
The TRIX can be used in several ways, but is mainly used for trend analysis. It’s plotted on a scale, where the indicator will oscillate around a zero line.
Unlike other oscillators, the TRIX’s triple exponential smoothing removes the cycles that are shorter in length than the periods you selected.
The Williams %R is calculated by comparing the current closing price with the high and low of a previous time period. This indicator can be used to determine where the stock is trading within its current trading range. If a stock is trading outside of its range, it is considered either overbought or oversold. The %R is plotted on a negative scale, which ranges from -100, which is the lowest level, to 0, which is actually the highest level.
The Commodity Channel Index or CCI indicator was originally developed for commodities, but can also be used for other assets that are traded. It is calculated using the ‘typical price’ of an asset , and is used to measure how far the stock price varies from it’s statistical mean.
The Commodity Channel Index is plotted on a scale ranging from -200 to 200. Most CCI values will be between -100 to 100, and the indicator will fluctuate above and below the center zero line.
The fewer periods used to calculate the CCI, the more times the indicator will likely fall outside of the -100 to 100 range. Using more periods to calculate the Commodity Channel Index indicator will result in a less volatile CCI.
The Average True Range indicator is actually used to analyze a stock’s price volatility. It is calculated using the SMMA, or smoothed moving average of the true range values.
Ranges can be used to show you the current enthusiasm of traders in the market. If a range is increasing, this shows that traders are likely to continue buying or selling throughout the day. When a range decreases, this shows that traders may be losing their enthusiasm
The ATR indicator can be used to help you reduce risk while trading, such as by helping to find good levels to set stop losses.
The Average Directional Movement indicator can be used to analyze a stocks trend strength when performing technical analysis. Using a series of prices, the ADX indicator allows traders to see how strong a stocks trend is in order to place more calculated trades.
The ADX indicator actually combines both the positive directional indicator and the negative directional indicator and smooths them using a smoothed moving average. Although the ADX can show a stocks trend strength, it is not used to show the trend direction or momentum.
In this section, we will be going over various technical overlays that are used to analyze stocks. Technical overlays are similar to other Indicators in that they provide insight into a stocks price movement. But instead of being separate from our charts, they are ‘overlaid’ directly onto our candlesticks.
Technical overlays are simply another type of indicator that can be used to trade any asset, whether it’s stocks, commodities or even cryptocurrency. They can be applied to any technical trading style, whether it’s short term trading or long term investing.
Technical analysis includes the study of many technical overlays, such as moving averages, support and resistance lines, price channels, and tons more. Personally, whenever I’m performing technical analysis, I also add at least one indicator, and one overlay to my candlestick chart.
So now lets go over how to analyze stock trends, and using support & resistance levels for trading. Learning how to find and use support & resistance levels and recognize trends is highly important for technical trading.
There are tons of strategies and techniques out there for drawing support and resistance lines for technical analysis. Other overlays such as moving averages or bollinger bands could also serve as support & resistance levels as well.
Many traders are extremely picky about getting each line exactly right, but I just do what works for me. There is no right or wrong method, simply what has worked, and what hasn’t worked for you.
Moving Averages are one of the most popular overlays used by traders. They are shown as colored lines overlaid on your chart, which represent the average price of a stock over a selected period of time. The number or length you select for your moving averages will become the amount of days calculated into the moving average.
For example, a 200 day Moving average would show the average stock closing price for the past 200 days. Moving averages can provide you with all sorts of stock data, such as with helping you to identify when a trend has begun or ended. They are among the most popular overlays that are used for technical analysis.
Bollinger bands measure volatility, with bands placed above and below a selected moving average.
On a day chart, the middle band, which is usually shown as a dotted line, represents the 20 Day Simple Moving Average. The two outer bands represent two standard deviations of 20, 2.
Bollinger bands are one of my favorite overlays to use for technical analysis, and can provide you with various signals, such as when an asset is either over or under priced.
The stock is considered overbought near the top band, and undersold near the bottom band. But just because the stock or other asset is overbought or oversold and touches a band, doesn’t necessarily mean it will change in direction that moment.
Price channels are similar to bollinger bands, except the outer bands represent the latest high & low made by the price movement.
Price channels consist of two trend lines that act as a support and resistance level for the stock price. The upper price channel shows the highest high over the selected period. The lower price channel shows the lowest low over the selected period.
The channel lines will always be parallel, but the channel itself can be horizontal, descending or ascending.
The Fibonacci Retracement can be used to help find and view a stock’s support & resistance levels. It uses the Fibonacci sequence that is found everywhere in nature in order to predict market retracements.
Assets that are traded will usually retrace back to predictable price levels before continuing the prevailing trend. Using these price levels, you can see a visual representation of buy and sell levels in order to capitalize on volatility.
When performing technical analysis, it’s best to test & combine multiple indicators & overlays in order to select the best entry and exit points. The more Indicators and overlays you become familiar with, the more opportunities you will be able to recognize and be able to capitalize on while trading.
You can combine multiple indicators on the same candlestick chart in order to get a much clearer view of the price movement.