What are some TA tips for identifying trading opportunities and managing risk?

Technical Analysis (TA) refers to the use of past and present price data to analyze the financial market and predict its likely future move. TA works best if one analyses stocks on higher timeframe charts like daily, weekly and monthly timeframe. It's easier to trade any trends that are formed on higher timeframe since the possibility of price manipulation is low when compared to price movement on lower timeframe. Stocks that breach multi-week or multi-year support or resistance gives a very good move which lasts for the next couple of days offering the market participants a chance to take a trade even if they spot the opportunity a bit late. One must always define their trading goals and risk tolerance before entering a trade.

In Technical Analysis (TA), focus on trend identification using moving averages or trendlines. Look for patterns like head and shoulders, triangles, or flags to predict price movements. Use indicators such as RSI or MACD to gauge momentum and potential reversals. Employ stop-loss orders to manage risk, ensuring you exit losing trades swiftly. Additionally, diversify your portfolio to spread risk and never risk more than you can afford to lose on any single trade.

Pay attention to relative strength buy signals. Plotted on a Point and Figure chart, these stocks are highly likely to outperform. What is interesting to me is analyzing their action in market pull backs, where typically when the market finishing its consolidation, high relative strength stocks are the first ones to get back in gear and start a new leg higher.

In my experience as a trader.. I focus on strongly trending stocks.. there aren’t any specific ways to trade .. each trader has to trade according to their own personality with managing their risks using established money management strategies / position sizing. Developing an edge & effective Risk management is at the core of any successful trading strategy.

When using TA, the first thing to make sure is the market has no events which could ruin ur TA analysis. 2: When Using TA u must determine ur strategy on how u enter a trade. It is best when u get more than one confirmation via an Indicator. Secondly, dial down from higher time frames to lower to seek a good entry into the market. To manage Risk. Set a SL below the lines u believe are resistance or support, a little higher. Note some nasty brokers can slip a few cents to catch ur SLs…

Indicators are about mixing and matching. There no right indicators. It’s a matter of practice and trading style. Some examples Are RSI, BB

Una buena combinación de indicadores te va a decir: - La volatilidad del activo - La tendencias del activo - La entrada de una operación - La salida de una operación - La confirmación de entradas y salidas - El margen de riesgo de cada operación Entonces mientras hagas combinaciones de indicadores que te brinden ésa información, créeme que tienes una buena estrategia. Luego trabajar en el plan completo.

Selecting appropriate technical indicators is crucial. Rely on indicators that align with your trading strategy and provide accurate signals. Consider indicators such as Moving Averages, Relative Strength Index (RSI), or Bollinger Bands, depending on your preferences and the market conditions.

I experimented with dozens of well-known indicators - RSI, MA, SuperTrend, ADX and so on - built a simple automated strategy and conducted backtests. All backtests failed because these indicators based on formulas have no opinion, they are just derivative tools. Their probability is 50%. Choosing the right indicator can mean choosing the coin you flip to make a trading decision. Check it out.

Instead of being a jack of all trades (knowing a bit about all the indicators), one should specialize in a few indicators, how to personalize them, and how to apply them.

Trend is your (real) friend! The easiest winning positions are made when you go with a flow. However, the biggest wealth is made if you can find a turning point.

Hay estrategias hechas para un trading contra-tendencia, dónde se espera hacer las entradas en los picos y/o valles, en éste tipo de trading se espera tener varías perdidas pequeñas y cuando sea correcto el giro agarres amplios beneficios compensando la pérdidas y quedando con ganancias. Sin embrago debes ser un trader bien capacitado para saber buscar los puntos de unos posibles cambios de tendencias. Para los traders no experimentados se recomienda seguir siempre la tendencia por el hecho de estar operando en gama más altas de probabilidades 👍

Trend-following strategies can be effective in capturing market movements. Identify the prevailing trend and align your trades with it. However, be cautious and use additional analysis to avoid entering trades too late or during potential reversals.

Use a simple moving average let's say 20 MA as a trend indicator. When it is moving up trend is up so odds are better to be long. When the MA is turning down trend is down so odds are better to be short. Avoid flat MAs as there is no trend. It s better to follow the trend and go with momentum and flow rather than trend against it. Trading does not have to be complex, have only a few rules and make them your trading plan.

Identify structure of a market or use the technical tools such as moving average to have a clear sign of market trend. Follow the trend direction and trade with the same direction as the dominant market force. Avoid trying to predict the reversals such as tops and bottoms when there is no clear signal. In order to cut your loses early, don't forget to use stoploss orders and trailing stops to protect your capital and locking your gains.

The most important step of trading is not losing money, or if you are doing so in a manageable way. It’s important to set predetermined levels where u will exit ur trade. Remember everyone gets a trade wrong sometimes or the trend changes so stick to ur rules and if levels have reached manage risk accordingly. Trading is a marathon and not a sprint

Creo que entre las primeras leyes de trader novato está en sólo enfocarse EN NO PERDER EL CAPITAL. Parece algo que todos queremos pero no todos sabemos hacer. Las emociones son un pilar y saberlas manejar para tomar decisiones son la clave. Entonces mantener tus stop loss y gestionar tu capital es fundamental 😉

Effective risk management is essential for long-term success. Set stop-loss orders to limit potential losses and use position sizing strategies to ensure that no single trade can significantly impact your overall portfolio. Diversification can also be a part of risk management.

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"Only what gets measured can get bettered". Reviewing your performance and maintaining a trading journal are essential steps towards progress. Key metrics like maximum drawdown, average risk-to-reward ratio, and accuracy should be diligently tracked to enhance your trading strategies. #Trading #PerformanceReview #ContinuousImprovement

Es muy importante conocer nuestro porcentaje de rentabilidad y que el resto sean pérdidas aceptables. Hoy en día en la mayoría de los broker dentro de sus aplicaciones ya cuando pides un balance de tú cuenta trae muchos calculos que te pueden ayudar, los ratios y los tipos de ganancias.

Regularly evaluate your trading performance. Analyse both successful and unsuccessful trades to identify patterns and refine your strategy. Keeping a trading journal can help you track your decisions, emotions, and outcomes, providing valuable insights for continuous improvement.

You can use pattern recognition as a tool for trade opportunities. One very simple pattern is the pullback to a trough area as shown in the picture of chart from Trading View. Simple entrance with easy to define risk based on taking out the low of the trough area. So a trough is a consolidation area where the market either trades , for a few days, lower from a recent high in bull market or higher from a low in a bear market. The pullback is when the market retraces back into the trough area and then reverses back the other way. This is much easier to see with a chart picture but the trade setup is easy and orders for trade entrance and risk can be sent at the same time so you have risk in if you are filled on your entrance order.

Being mentally fresh and avoiding distractions are key elements towards following a specific trading discipline. This can include controlling emotions like panic, greed, etc.

Pay attention to the study of torus volumes - through them you can gain insight into supply and demand balances and imbalances, and how market participants misunderstand the current fair price of a financial asset