Poll: Which charting tools do you count on?

Here on the Trader's Blog we talk a lot about MarketClub's "Trade Triangle" buy and sell signals, but even we often look at other indicators. If you're a frequent visitor to the blog, you have undoubtedly noticed that one of Adam's favorites is the Fibonacci retracement.

Like trading styles, the way a trader analyzes a chart can vary from trader to trader and so today we want to know what chart studies you rely on.*

What chart study/studies do you use most often?

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After you choose your answer(s), drop us a comment and share why and how you find them to be effective in your trading.

*We don't have enough room to list them all, but if we missed one that you can't live without, leave us a note below and tell us what it is and how you use it.

46 thoughts on “Poll: Which charting tools do you count on?

  1. I use support/resistance, different combinations of MACDs, moving averages and trendlines to analyse different cyclical teends.These are complimenting each other and seldom give conflicting results.

  2. Due to investing part time I find it easier to go with with the Market/Trend. When it breaks I go the other way. In and out can cost you. Dont get out of your winning trade until you have to. I have left a tremendous amount on the table getting out too soon. Get out of loosing trade right away. you can always get back in.

  3. I prerefer use MACD and Stochastic Oscillator to buy and sell my stocks because it give me an accurate signal.

  4. I know all the indicators are good but it is not so believable in this market. Even you can see some hints but soon you will be swept away. You have to understand that these are all lagging things. When you see them change direction ( reversal ) it will not give you a definite answer. So, it is not good for inter. and long term trades. Go day trade may be a bit better. How about a 5 min or 30 min chart helping you ? Have a good trade.

  5. I'd like to put in a few words regarding the use of the RSI and stochastic for daytrading, I found this basic system very helpful while starting out . I use a 9 period RSI along with an exponential 9,3,3 stochastic for daytrading on 5 minute charts. I have found that when the RSI is below 30 and the stochastic is below 20 and the stochastic crosses above it's moving average a long entry above the high of that bar will generally result in a decent profit. Initial stop is below low of the signal bar,the position can be held until the stochastic reaches the overbought zone. It pays to have a trailing stop below the low of the previous bar. The strategy is reversed for short positions.

  6. I need help. I must find a way to generate $5,000/month minimum. I only have $700 in an option trading account. Don't laugh, this is a must do situation. Open to all suggestions, options (currently using), emins, Forex, Commodities. Which road would you take and how best to screen and who's current advice is best?

  7. GDAY, before discovering W.D.Gann and trading his methods the indicators I USED MOST FREQUENTLY would be #1 trend then, volume and open interest with macd and rsi then a displaced moving average,also of great importance are various time frames used before a decision to enter or end any position bull and bear flags on weekly time frames were a great help as well as ovi gday dave j

  8. This is an interesting poll... While I find many of these to be useful at various times, the only real-time, dare I say leading, indicator is volume. Cheers!

  9. Use the KISS method. The fewer indicators the better. I use grater timeframes as anchor to determine overall trend. Then BB and MACD for entry in actual time frame in according trend.
    I also use RSI and stoch to determine divergence, but it is less accurate.
    Looking forward to include TTriangles and see how to complement trend following trading.

  10. i use wm %r macd stoc ema3 ema10 eam20 short term ema20 ema50 longer term. volume trend lines' vol >1000000 price >5

  11. Best tool-the clock; dont get in before 10-get out by 3.
    Favorite tool-my own; a tool I developed which I call the Coral Snake.
    Wait for the second BB hit in the morning before getting in.
    Candle reversal outside or stradling BB, or double hit on BB (2,11) - when BB is flat or reversing with support or resistance from volume. Watch the support/resistance and pivot lines-especially inside or very near the BB's, don't forget the MA crossovers.
    When close one candle is even with open of the next candle, direction change is a near certanty, verify strength of direction change with volume.(Opposite for shorts)

  12. I use three monitors trading station, with 11 indicators I only move when the majority agrees, 15 bads (lost $ 1,200), 270 goods trades (gain more than enough)in the year.

    I only trade stocks with Mkt Cap > 500 M.

  13. Almost two years ago I stopped trading "mainly", canceled the expensive and excuse filled advisory investment rip-offs, and began looking at reams of charts to identify what indicators, averages, etc worked CONSISTENTLY and PREDICTABLY and UNIQUELY- why have two indicators that tell you the same thing?. I've ended up with a compact toolkit (including -no surprise - the RSI and MACD).

    My second objective was to program scans that produced charts that matched the signals my toolkit identified as ENTRY POINTS for profitable trades. Who wants to buy a stock that's being talked up by your uncle who heard about it on the radio?

    Then I came across MarketClub.

    I feel like I've crossed the Atlantic in the Santa Maria and "discovered" New York City.

  14. I use MACD regularly to confirm what seems obvious on a chart. Frequently it isn't. I'm tying to pick up skill at seeing the RSI vs. MACD divergences, but that's a work in progress. I look at the Fibonacci lines to confirm possible turning points.
    I'm looking at the Donchian Channels occasionally to see what advantage they have over Bollinger Bands, but there's something there I don't see. Beyond that, each of these tools has its own application, so I hope there's not a big "weeding-out" planned.
    Thanks for asking.

  15. i use 3ema,10ema,20ema,50ema,200ema macd,stoc, wms %r and try to pick the best for each individual stock. i try to pick 10 good stocks for the following week using 30 min daily & weekly charts. for long term weekly & monthy charts

  16. I also like candle charts and especially long shadows of a Hammer or Shooting Star. I also like multiple time frames in Candle charts and find Im using weekly charts more nowadays for some kind of confirmation.
    Now, if only I can perfect that Time Machine, Im working on, then Im really going to clean up! 🙂

  17. Hi Susan,

    I use Trend Lines,Moving Averages,Fibonacci Retracements,Candlesticks Patterns,Ichimoku Cloud for trading.Trend lines and averages are versatile and form basis of my trading.Fibonacci and Ichimoku cloud is used for timing.Candlestick Patterns for confirmations and targets,stop losses.Indicators like RSI and MACD for divergences.I use all time-frames i.e.Daily,weekly,monthly to catch a trend.

  18. SUSAN- Is there not a way that all of the charting tools could also be the basis for alerts as well...So, if I wanted to be alerted when the Stochastics dropped below 80% or MACD had positive crossover, I would get an alert so I could monitor a potential trade?

  19. I am a longer term investor, rather than a short term trader. I use a combination of technical tools, but one of my primary tools is support/resistance areas.

  20. most of the trading ideas used for the last bull market do not work in this one. the usa federal reserve private banking cartel seems to be doing what greedy nature tempts us to do- flood the money in our own pockets. it doesnt matter what they do as long as banks withhold loans from people with good credit for our economy is not based on precious metals (although fundamentally it is) it is based on paper credit.
    the money they print is not finding its way in the pockets of the middle class, it is finding its way in the top echelon the elites of society.

    so what i started to do is trasnfer my money into gold and silver coins, not collectibles , but pure mint bullion, and most of my wealth went into silver in mid july 2010.

  21. Omitted from your list is the MACD which Market Club uses rather extensively. Also not listed was Support & Resistance levels, which I believe are very crucial to successful trading.

  22. I use the MACD divergence, especially the way Adam Hewison uses it. Too bad Market Club screener does not screen for divergences. The ratio for winners vs losers would improve significantly if trades could be found using this screen.

  23. I use SMA 50,150,200 to see if the trend is Bullish or Bearish, Bollinger Bands to see where Support & Resistance level is at & only use it when the trend is in Consolidation, RSI(3) & William%R (3) to confirm the Top & Bottom.

  24. I look at them all, but my favorite and most accurate indicator for trend reversal
    is the 4-day EMA & 10-day SMA crossing.
    I like the 240-minute chart with the Ichimoku Cloud for Long-Neutral-Short strategy.


  26. I just started getting into this. I actually pull all my data for the past 5 years by week into a spreadsheet and plot it. I look for those little triangles and a positive trend upward in positive market segments. Right now I'm into Junior mines for Platinum, Copper, and Gold. What's the cheapest, best software? I don't know?

  27. I use 10ma 50ma, 200ma, and stocastics and RSI and Volume and MACD together. the problem is they are delay to comeout on the charts after trading day. and let me missed good chance.

  28. I use mainly stocastics 10,3,3 with a fair accuracy on turning points on 5min and 30 min charts

  29. I use mostly stochastic 10,3,3 and apply the same indicator to 5min and 30 min charts with a fair pinpointing of turning point
    Thanks for your daily support

  30. We don't only choose stocks simply by looking at the indicators. In our opinion fundamentals together with technical can give far better results. We have a big list of good companies which we scan over time to pick the best out of them all.

    We use a range of indicators to look for good stocks
    - Volume is used to look how powerful a breakout is
    - Stochastics is partly used for our entry
    - RSI to see if the strength goes up, of if there is some divergence

    We use a bit more to get things (almost) right like cycles, historicals, Fibonacci and so on in a nice balanced mix.

  31. I check for oversold on bb and whether mov avg trending up before buying. I wish there was a way to view past scores as another trending parameter.

  32. Bonjour Adam
    Forex chart tracking, I use double moving ave (10) (20)

    along with the RSI.and the volume.Using your trade triangles as back up.

    germain canada

  33. I have been trying to use the same charting tools as traders do. That's why I favoure RSI, Bolloinger and MACD (not mention in the list above).
    I think the same survey could be most interesting if carried out amongst traders. So that we could update our tools !
    Thanks and have good trades

  34. I trust the signals that stochastics gives. I use 2 different time frames within each other. Using them with your trade triangle signals. First the triangles then the stochastic for support. Helping me target an exit price easier.

  35. Hello,

    i miss some important issue: Price and Candle Patterns, Support and Resistance.

    Mostly I use Price Patterns in combination with Volume and Support and Resistance. I use other tools (BB, Moving Average, ADX,..) only for stock screening.


  36. I've taken Adam's explanation of the MACD and have used it successfully, applied in conjunction with Fibonacci, one can almost predict WHEN a "Trade Triangle" will appear. Open Interest is also in the quiver.

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