Lesson 5 of 8: Intro to Technical Indicators | Getting Started with Technical Analysis | 12-5-23
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- Опубліковано 21 сер 2024
- Getting Started with Technical Analysis | Cameron May | 12-5-23
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
What are all those crazy, colorful lines and things on a trader's stock chart? Those are known as technical "studies" or "indicators." In this video, we use example charts to explore the pros and cons of three example indicators that are used by some traders to identify potential trend direction and trend strength: "Simple Moving Average" (SMA), "Moving Average Convergent/Divergent" (MACD) and "Relative Strength Index" (RSI).
Moving averages, Oscillating Indicators, MACD, Stochastics, or RSI? It all sounds like a foreign language! Just like using a stop light while driving, technical traders use indicators to help them know when to stop, go, or proceed with caution. In this episode, get an introduction to some of the most popular technical indicators and how to use and interpret them. Learn how to customize them, create study sets, and which combination of indicators can be effective.
0923-3GR1
Options involve risks and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options carefully before trading.
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Easy to follow along and very helpful. Thank you Cameron!
Glad you liked it! It's always my pleasure to do these webcasts, and thanks for watching, Wes! ^CM
Cameron...The videos provided by Schwab and your insights have taught me a lot. And now I need to apply the concepts in Think or Swim Paper money mode. And create a trading style using the various tools covered so far in the series.
I like the way you always state it's at the Trader's Discretion on how to apply the indicators to a trade.
Very glad to hear that you've found good value in my webcasts, and good luck with your PaperMoney practice! ^CM
Good analogy with the fitness center but when one learns the fundamentals of weight lifting running, and/or swimming then one can develop the right program for his or her selves.
You got it! ^CM
this training was awesome Cameron, thank you for the clarity!!!
Glad you liked it, and it's certainly my pleasure! ^CM
good1
Glad you liked it! ^CM
I missed out on the live session Cam - (had a dentist appointment) - feeling OK and ready to learn
Good to hear you're feeling well, and thanks for watching, Ken! ^CM
Thank you, finally, for explaining all these platforms and what to click on and what not to click on. I used a typewriter and a dialup until a couple of years ago, and now all this new financial language started out to be Greek to me. One question I have is now that I have funded my TD Ameritrade account with my first $50, I now know how to place a trade BUT how do I close it and get paid if I make a profit? And is there a commission or fee I have to pay when I do make a profit after I close the trade, or just when I withdraw the funds to my bank account? Anyone?
Happy to clarify! When one exits a position (for example, when they sell a profitable stock), any gains are added to the account's cash position, and then - depending on account type - the account holder can arrange for money to be issued from the account via a number of paths. I'd suggest calling Support at 800-435-4000 for help with that process for your account. As for commissions, some trade types have commissions, and others do not. These commissions will be displayed on-screen before you make your final order submission. But as with your "cashing out" question, I'd suggest a quick call to Support if you have questions about potential commissions on any given trade. Thanks! ^CM
On the RSI, does the 30 indicate support and the 70 indicate resistance? Also, all these indicators and charts show what the market and stocks were doing IN THE PAST. How do we apply this to possible FUTURE trades? I want to make money, not lose it.
Thanks for the questions! To clarify, rather than indicating support or resistance, these "zones" typically indicate potential "Overbought" (above 70) or "Oversold" (below 30) levels. Similar to resistance and support, but not exactly the same. As for the concept that technical indicators use historical data, that's a good and accurate observation. They do, and consequently, one might make a case that all technical tools are "lagging" indicators. But to a chart user, this doesn't necessarily mean the information is without potential value. The idea is to learn from history, and to apply insights gleaned to the planning of future trades. Yep, we're all in it in an effort to make money, but we also recognize that no market approach is perfect, and all investing and trading involves risk. ^CM
Why Gaps needs to be filled. What is the concept of gap fill ?
Glad to clarify! First, there is not an assumed explicit "need" for a gap to fill. That said, a common technical assumption is that if a gap is re-entered, it is likely to fill. This may be related to a premise that the top or bottom of a gap represents potentially critical "tipping points" for a stock, as gaps are frequently created by comparative emotional extremes of either excitement or fear. Re-entering a gap may theoretically signal a fading of excitement or easing of fear, and thus, price may return to where it was before the heightened emotion occurred in the first place. I hope that helps, and thanks for watching! ^CM
Theoretically, why don't you state for starters that the length of the RSI and SMA be equal? I realize that TA is not a pure science but why not?
I doubt you're the only one who has wondered, "Why don't I just set all my daily indicators to, say, 50, so they'll line up?" It's a solid question, but the reality of technical indicators is that they just won't align that way. Their algorithms and intended analytical functions (trend analysis vs cycle analysis, etc.) are too dissimilar. But thanks for asking, and thanks for watching! CM