There are literally hundreds of indicators that you could include in your charts, but then you would be in danger of information overload. It is surely better for you to go with the ‘less is more’ approach and stick to those essential which will allow you to see what is going on. Here are my suggestions for the top 5 charting indicators which you might consider putting on your chart.
Let us start with the basics and with 3 on-chart indicators. The first of my top 5 charting indicators is quite simply Volume. This is at the heart of everything. Keeping an eye on volume will let you know when the bigger players are moving in a breakout area.
Second on my list of top 5 Charting Indicators is the ADX, or the average directional index. You use this to judge the strength behind a trend and also to confirm the strength of a trend when day trading breakouts.
Third on our list of top 5 charting indicators are some derivative indicators that you might like to plot on your chart using Tradestation. Find the program formula for pivot points on the broad market indicators lesson, and also remember to have the Fibonacci retracement levels on your chart, as they are well respected by the trading community.
The fourth of our top 5 charting indicators and the first to be off chart is the time and sales window or ‘tape’. This will add to the knowledge you acquire from the volume index and help you to judge levels of buying and selling pressure.
Finally, the fifth of our top 5 charting indicators is the TICK index. Set up alerts at the -800, -1000, 800 and 1000 level so you will be up to date with climaxes of buying and selling in the market.
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