Decide where to trade - Daily, long or intra-day.
The period you chose to trade is the intermediate period. Once you decide the period, don't open it as a first analysis screen. This is important. Because your first analysis always throws a bias.
Go one level down and open the chart. If intermediate is daily, open Weekly. If intraday,open daily.
If daily, check the Weekly(1 above) chart to get the trend
(1) first step to identify the trend.You can rely on 200 EMA to get long term and 50 EMA to slightly shorter. If the price is above, it is bullish and if below , it is bearish
(2) next, go to daily to decide when to enter. The goal is always to get a good price. MACD histogram is good tool. Ideal is when below zero and rising.
(3) go to intraday, check the oscillators. Stochastic and RSI are popular.
Always wait for a pullback when entering bullish.
Other indicators on daily, could be ADX when it is rising from 20 range.
DONT check RSI , stochastic for long term analysis. These are primarily oscillator indicators.
The period you chose to trade is the intermediate period. Once you decide the period, don't open it as a first analysis screen. This is important. Because your first analysis always throws a bias.
Go one level down and open the chart. If intermediate is daily, open Weekly. If intraday,open daily.
If daily, check the Weekly(1 above) chart to get the trend
(1) first step to identify the trend.You can rely on 200 EMA to get long term and 50 EMA to slightly shorter. If the price is above, it is bullish and if below , it is bearish
(2) next, go to daily to decide when to enter. The goal is always to get a good price. MACD histogram is good tool. Ideal is when below zero and rising.
(3) go to intraday, check the oscillators. Stochastic and RSI are popular.
Always wait for a pullback when entering bullish.
Other indicators on daily, could be ADX when it is rising from 20 range.
DONT check RSI , stochastic for long term analysis. These are primarily oscillator indicators.
tidbit: Long is usually 5 times duration than intermediate. If intermediate is daily, then long is weekly. If intermediate is 5 mins, then long is 25 mins.
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