To really trade successfully, you need to be able to identify good trading strategies. This can only be done by having a good understanding of the different indicators that can guide you. Here are some examples of trading indicators and strategies that are available to traders today.
Average – The average is the four-letter word in trading. It can be easily found by looking at trends in the stock price. The best part about averages is that they have no special characteristics to go with them. In fact, when trading with averages, the trader is basically able to get a glimpse of what the price will do before it happens.
Stochastic- Stochastic is an indicator used to monitor stock prices. It is essentially the average difference between two consecutive times. However, there are three types of stochastic and the type used is based on the trading method being used.
Stochastic is best when used as a trading strategy because it is easy to understand and does not require much analysis. To use stochastic effectively, one must keep a close eye on the market price and can often be difficult to analyze.
Bollinger Bands- This is a time frame that spans from a period of time known as the "long term price action." For this type of strategy, the trader will want to use this indicator along with other indicators to predict where the stock price may go and when.
One will need to watch for the "bust" as well as the "bulls." The "bust" is the times when the stock price falls below or above a certain level. The "bulls" are the times when the stock price gains or falls above a certain level.
Dual Time Frame, Multi-Mode Chart Indicator – This type of indicator is best for short-term time frames. This is because it is able to provide insight into a short-term price action without any interference. It is also able to provide information that is more relevant in longer time frames.
Black Swan – This is a reference to a certain event in the stock market which is unusual and unpredictable. However, it can provide a great deal of insights into the market.
Like that there are different strategies that a trader can use to create a strong trend and with each strategy comes a different approach to the market. For example, the bullish trading strategy uses price action and the stochastic with a measure of trend lines.
Meanwhile, the bearish strategy is used with the indication of the price action as well as the stochastic and the black swan indicator. The other trading strategy is called the neutral trading strategy.
When using different indicators for trading strategies, the strategy itself should be able to track and generate money. This is not as easy as it may sound, so it is important to consider the different strategies and how they perform for various traders.
Keep in mind that there are many strategies available, but all of them are based on market forces and no strategy can provide any type of information that cannot be tracked by price action. As long as the strategy is able to continue to move along with the market, it will continue to make money for the trader.