Query by mehtapankil: Technical Evaluation?
1-Can some 1 please inform me what time periods to use for macd, stochastics, relative index and moving typical.
two-Does any person know what is swing trading. I heard it is the ideal tool in the stock industry for producing money.
Answer by yaguru
properly for moving typical, you can use any timeframe you want..like a one hundred day moving average will define long term trends, whilst a 9 day moving typical will identify quicker reversals..a very good factor to do is use two moving averages together..that way you see the cost line move across the average, but you get a clearer sence of a actual trend when 1 moving average line crosses another..
Personally, a although ago, I created a brief term trading method….the moving average pairs i utilized have been 9 and 15 day
15 and 25 day and 9 and 25 day. This was primarily designed to pick up quick term trends with far more volatile reduced valued , a lot more speculative stocks.
Like I said, for a longer term, you could certainly use a 25 and one hundred day moving average…heck there may possibly be benfits to utilizing a 9 and one hundred day typical collectively…the sky is the limit.
For the stochastics indicators, I discovered that a shorter time frame is required, due to the fact you want to pin point when the
connection in between the higher/close price is changing…
so it the high/close is 100 % for a week, and then swiftly starts to drop….if you use a five or 9 day stochastic, you can readily see the percentage drop from a one hundred% close to a 90% close to higher connection……if you use to numerous days, the graph will probably look as well flat.
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