TECHICAL ANALYSIS
METHODOLOGY
Tools used for trading signals
MULTIPLE TIME FRAME ANAYLSIS
Multiple Time Frame Analysis is the technique of analyzing several time frames of the same asset before entering a trade. This type of analysis is best done using a top-down approach, i.e. starting at a higher time frame and working your way down, via several lower time frames, until the execution time frame is reached where a trade could be entered. Traders who use this technique usually look at 3 or 4 different time frames to identify the general trend and find the best entries. They minimize their risk and improve the odds of success simply by taking the bigger picture into account. It can easily be combined with any trading strategy.
SUPERTREND INDICATOR
The Supertrend Indicator is a technical analysis tool that helps traders identify market trends. It's often used for stocks, currencies, and commodities.
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The Supertrend Indicator plots a line on a price chart that acts as a dynamic level of support or resistance. The indicator's purpose is to determine market direction, not to time trades. It can be beneficial in times of increased volatility.
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ICHIMOKU KINKO HYO
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The Ichimoku Cloud, also called Ichimoku Kinko Hyo, is a popular and flexible indicator that displays support and resistance, momentum and trend direction for a security. It provides a clearer picture of price action at a glance. It can identify the direction of a trend, gauge momentum and signal trading opportunities based on line crossovers and where price is relative to these lines. These signals help traders to find the most optimal entry and exit points. The indicator consists of five lines (each representing a different time interval) and was developed by Goichi Hosoda, who was a journalist that spent a long time improving this technical analysis technique before sharing it publicly in the late 1960s.
MOVING AVERAGE CONVERGENCE DIVERGENCE
MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of securities prices, created by Gerald Appel in the late 1970s.[1] It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price.
