Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Technical Analyst, Saxo Bank
When I do my Technical Analysis I use a variety of Technical Studies and Indicators.
Below I have listed a short description of what I use and how I used them. They are not meant to be exhaustive in their use and understanding but merely just a brief walk-through for you to get a better understanding of my Technical Updates
I also use Trend lines and Fibonacci tools but that is for another day. I might also do a part two covering more Studies and Indicators
In this article:
Volume – Number of shares traded
Moving Averages
There are several different types of Moving Averages e.g.: Simple, Exponential, Volume Weighted. SaxoTrader offer the most used ones. Here I discuss the Simple Moving Averages
Settings:
Most traders are using 20, 50, 100 and 200. I use 21, 55, 100 and 200 time periods. Why 21 and 55? Because they are Fibonacci numbers and I feel they tend to work a bit better. It is a personal style
Relative Strength Index (RSI) – an Oscillator introduced by J. Welles Wilder, Jr.,
RSI is an internal strength indicator as it compares the price of a security relative to itself. It measures the relative strength of price gains on days that the security closes above the previous day’s close to price losses on day’s that the security closes below the previous days close.
The RSI is a momentum indicator that measures the magnitude of recent price changes (the ratio of higher closes to lower closes) to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator between values of 0 to 100.
Tops and Bottoms
Trends
Support and Resistance
Divergence
Default settings
Ichimoku Cloud is a trend and momentum indicator and can be used to identify support and resistance levels