Trading Method
Technical traders use technical analysis to read to financial charts for possible trade opportunities.
Technical analysis is a method to read the financial charts using a set of correlated technical indicators to find a confluence zone for trade opportunities.
Confluence zone is an area where all or most of the technical indicators are indicating the same trade opportunities. The more technical indicators indicating the same direction, the higher the probability the price will go in that direction.
A technical trader sole and only job is to identify high probability trades by reading the charts using a set of technical indicators to identify 3 things as below:
1. Confluence zone for high quality trade entry.
2. The zone to set stop loss to manage risk & cap losses, the zone to secure trade position so the trade has zero risk and the zone to secure guaranteed profits to prevent a sudden reversal from eliminating unrealised profits.
3. The zone to maximise profit taking.
There are certain things a trader need to identify before looking for confluence zone to enter a trade which are listed below:
1. When is the best time to look for confluence zone?
2. When to avoid having a trade entry?
3. When will the relevant economic data be releasing that will disrupt the market?
4. Any major financial news, corporate earnings release, big events and policy changes that will disrupt the market?
5. What are the market cycles for every financial charts (long term, medium term & short term)?
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