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All too often we get caught up in a myriad of advanced technical indicators, all in our quest to find the holy grail of trading. There are any number of complex technical indicators out there, of which when used in conjunction can contradict your very purpose of analysis in the first place. –Finding a logical, precise entry and exit into the market based on cold, hard, historical facts.
So what happened to good old technical analysis you ask? Hubb’s very own TradingKey students are out there right now, finding excellent trades based on an extremely successful combination of technical indicators.
First and foremost, Elliott Wave. By sticking to two or three simple indicators, you will often find that you achieve the best results.
So where do you start? Certainly not with your Gann fans, square of nine or displaced moving averages. Get back to basics. Real basics.
ProfitSource contains a range of drawing tools, which can be used to simply draw lines of support and resistance on any chart. One of the most simple practices to any trader, support and resistance is paramount to ensuring success in any trading plan.
A support line represents the price at which perceived value matches current market price. A break of support lines can be seen as either bullish support or bearish resistance.
When determining bullish support, we look to link higher consecutive lows following an upward trend in stock price. When this support is broken, this indicates a change in overall trend of the stock.
Resistance lines operate on the same principle. When determining bearish resistance, we look to link lower consecutive highs following a downward trend in stock price. When this resistance is broken, the bulls can come out from hiding.
In recent Elliott Wave Webinars, support and resistance has been a major point of focus and as attendees will be aware, the results so far have been spectacular.
Using simple trend lines, the astute trader is able to deliver extremely rewarding results, particularly alongside Elliott Wave and other technical analysis indicators. When using support and resistance, what one will find, is Elliott Wave trading opportunities will often appear along these varying levels Using support lines to confirm your Elliott Wave Trades is key to any successful investment strategy.
TradingKey is a program which equips traders with the knowledge and skills to consistently take profits from the markets. TradingKey does not just cover Elliott Wave. It covers Elliott Wave in conjunction with several proven and logical indicators, to ensure you understand the markets and the indicators you trade.
Speak to your Account Manager about the TradingKey today so you can make the most of 2011.
Stay ahead of the game,
Lachlan McPherson
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