|Swing Trading Pattern Recognition|
Subscribe to The Market Speculator by Email
Please retweet if you liked this article! Tweet
Many are disappointed when I tell them I only look at moving averages and stochastics, while sometimes peaking at RSI to spot divergences. Last week I even had an e-mailer tell me I was hiding my strategy from them!
Here is the reason I use so few indicators, and even those are usually unnecessary. Almost all indicators are measuring two things in some for or another: price action and volume.That's it!
Guess what? Your eyes can spot price action and volume. An advanced trader doesn't need the indicator. After studying thousands of charts on a daily basis for over a decade, the advanced trader doesn't need indicators. The eyes tell it all through pattern recognition.
So study charts. Religiously. On a daily basis. Thousand of them, over and over again. Pretty soon you'll spot patterns in seconds without needing confirmation from an indicator.