How to create your own "Trading systems"
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@bhatiamanu @AdityaTodmal
#StockMarket #Trading
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🐦Retweet 🇮🇳 to share the knowledge 🙏
@bhatiamanu @AdityaTodmal
#StockMarket #Trading
What do you think is wrong with this system
🟢The 1st thought would be too many indicators, you are right to some degree.
🟢But the major issue is all the indicators are momentum indicator
🟢They all represent the same parameter
hence not directly adding value.
🟢The 1st thought would be too many indicators, you are right to some degree.
🟢But the major issue is all the indicators are momentum indicator
🟢They all represent the same parameter
hence not directly adding value.
Mistakes to avoid while creating your system
1⃣ Don't use indicators that represent the same parameters
2⃣ Try to keep the system simple
3⃣ Create a system that can define entry, stop loss, and exit as clearly as possible. or at least help you to gauge the market correctly
1⃣ Don't use indicators that represent the same parameters
2⃣ Try to keep the system simple
3⃣ Create a system that can define entry, stop loss, and exit as clearly as possible. or at least help you to gauge the market correctly
There are only 3⃣ categories of indicator
1⃣ Trend indicator
2⃣ Momentum indicator
3⃣ Volatility indicator
🟢This also means you hardly ever need to use more than three indicator
🟢This also means you can use the free version of #TradingView effectively 😋
1⃣ Trend indicator
2⃣ Momentum indicator
3⃣ Volatility indicator
🟢This also means you hardly ever need to use more than three indicator
🟢This also means you can use the free version of #TradingView effectively 😋
🌟Trend is your friend.
Trading in the direction of the trend puts the winning probability more in your favor.
Following are the famously used trend indicator
🟢Moving average
🟢Super Trend
🟢Parabolic SAR
Trading in the direction of the trend puts the winning probability more in your favor.
Following are the famously used trend indicator
🟢Moving average
🟢Super Trend
🟢Parabolic SAR
🌟Catch the Momentum
Without momentum, Trend will be a boring friend 😆
As a trader, your goal is to make big money as quick as possible.
Following are the famous momentum indicator
🟢RSI (favorite for many)
🟢STOCHASTICS
Without momentum, Trend will be a boring friend 😆
As a trader, your goal is to make big money as quick as possible.
Following are the famous momentum indicator
🟢RSI (favorite for many)
🟢STOCHASTICS
🌟Let there be some Volatility
Without much volatility in the market the opportunity to make money will be very less.
Famous indicator to gauge volatility
🟢ADX
🟢ATR
🟢BOLLINGER BANDS
Without much volatility in the market the opportunity to make money will be very less.
Famous indicator to gauge volatility
🟢ADX
🟢ATR
🟢BOLLINGER BANDS
Combining them to create a system
1⃣ Price in an uptrend
2⃣ Volatility is decent i.e above 20
3⃣ Momentum increasing
1⃣ Price in an uptrend
2⃣ Volatility is decent i.e above 20
3⃣ Momentum increasing
It doesn't have to be perfect
🟢You can also create the system by using two indicators or no indicators at all.
🟢The idea is to have some rules/parameters that can help you to gauge the market correctly.
🟢System will fail from time to time hence have good risk management.
🟢You can also create the system by using two indicators or no indicators at all.
🟢The idea is to have some rules/parameters that can help you to gauge the market correctly.
🟢System will fail from time to time hence have good risk management.
I hope this will improve your trading and help you to become a better trader.
I have shared more than 25+ educational content on my timeline.
follow @AakashSSawant1 to help you learn more about markets.
Link to the previous content.
docs.google.com
I have shared more than 25+ educational content on my timeline.
follow @AakashSSawant1 to help you learn more about markets.
Link to the previous content.
docs.google.com
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