One of the main things to remember when trading is that using an approach which utilizes multiple confirmation signals is generally the best way to go for statistical significance purposes (the more confirmations, the less chance of a false signal). One of the most popular ways to find confirmations on the chart is through moving average signals that occur when two moving averages cross either to the upside or downside (the shorter term moving average creates the cross). These signals are important for a number of reasons and will be explored more in the following sections. We will also explore one of TrendSpider’s most valuable features which help traders use their time more efficiently when the market is open.
This guest post was adapted from a private, members-only update that Trader Stewie from the Art of Trading shared with his subscribers. This is his perspective on using multiple timeframes to identify trends that you might otherwise miss, specifically why dropping down into shorter timeframe charts can help expose interest and actionable patterns and trading opportunities.
For those of you who are new to Trader Stewie, he has been trading for since 2009 and has a well-earned reputation for being a foremost expert technical analyst. In addition to running the Art of Trading, he also writes a blog called The Impatient Trader and is a prolific Twitter user. When Stewie isn’t trading, he can usually be found in the kitchen cooking up something delicious looking!
There are so many different approaches to trading, you could try a new one every day for the rest of your life and never run out of options. However, one that has been consistently popular, and consistently effective over the years has been momentum oscillator trading strategies.
When it comes to trading, one of the most common strategies traders implement is simply trading between support and resistance areas created by previous volatility in the price of a stock. There are many different types of channels to trade such as Bollinger Bands and Keltner Channels, but this article will solely focus on channels created by support and resistance levels and how traders take advantage of these setups.