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You need to read some books to form an opinion. I wouldn't listen to some random thoughts on city data forum. Look at what long term professionals use. Try to find literature that is written by professionals in the field or academics, but when you're reading academic books, particularly studies involving statistics, it is really imperative that you pay attention to the environment in which the study was conducted. This might help you get on the right track.
I wouldn't rely on other people to tell you what their strategy is if it consistently works, unless of course it's a programmer, bragging about how sophisticated their system is, but even then, they won't go into detail about their signaling mechanisms. It might help also to go to forums that are dedicated towards behavioral science techniques.
Price channels in general can help, but you should be able to pick S&R from the chart. It's pretty simple, time frame. High/low over the similar time frame (all macro factors considered). VOL over that time frame. Your deltas over that time frame. Price reaction & strike volume (OBV) during the time frame. How expensive/cheap are the options OVER THAT TIME FRAME.
I've already bought about a dozen books on options trading and technical analysis.
Next, I'll browse peer-reviewed articles, master theses, and doctoral dissertations available from EBSCO and ProQuest.
Finally, I wouldn't start trading till I've backtested whatever strategy I develop. If I make money in 2 out 3 trades, I'll start trading.
On the other hand, here in this forum, I've received very useful advice from participants such as TxGolfer130.
Doctor T
The key is that there are trading range markets and trending markets. Decide when to use what indicator based on this.
Well, you already know that none of this is an exact science. What makes it even more difficult to use is that there are idiosyncratic events that can affect an individual security that your TA will not account for, like earnings, scandals, etc.
If you want to trade using technical indicators, you should consider looking at FOREX. It's a much more liquid market too.
... trading range markets and trending markets ...
Dear Jobster,
Thank you for your reply!
As a newbie, I think trending markets ought to be my first choice. Do you agree?
Re FOREX, my knowledge of currencies is very limited.
Doctor t
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