Stating the obvious here, but in the mind boggling number of indicators out there a lot of traders simply forget some of the most basic and reliable ones. Price movement contains most of the information from which other indicators are derived.
Higher highs and higher lows. This is the most basic definition of an up trend and the first thing one should be looking at if aiming for example to short the SPX. Is there a clear shift in this trend is the question that should be answered. On different time frames the highs and lows will be different and the most sensible way of looking at this would be simply to identify clear tops and bottoms in the trend with the fewest number of candles for the particular time frame. A slightly lower high and higher low may be signal for a pause in trend and potential consolidation. A significant lower high with a lower low is a big red flag signaling a potential reversal.
Learn to read these most basic yet powerful price movements and trading will become a much more straightforward process.
Not trading advice. Just some brain farts. Oh, and I really don't care if you like and comment or if you subscribe or not. This is just me laying out in written form my personal path to become a reasonably good trader. I find it helpful as it makes me think harder knowing others will read my bullshit and be potentially influenced by it.
Higher highs and higher lows. This is the most basic definition of an up trend and the first thing one should be looking at if aiming for example to short the SPX. Is there a clear shift in this trend is the question that should be answered. On different time frames the highs and lows will be different and the most sensible way of looking at this would be simply to identify clear tops and bottoms in the trend with the fewest number of candles for the particular time frame. A slightly lower high and higher low may be signal for a pause in trend and potential consolidation. A significant lower high with a lower low is a big red flag signaling a potential reversal.
Learn to read these most basic yet powerful price movements and trading will become a much more straightforward process.
Not trading advice. Just some brain farts. Oh, and I really don't care if you like and comment or if you subscribe or not. This is just me laying out in written form my personal path to become a reasonably good trader. I find it helpful as it makes me think harder knowing others will read my bullshit and be potentially influenced by it.