This is a quick summary of 3 other methods of Technical Analysis. As usual, each method by itself is not as good as using a combination of methods.
PSAR - Parabolic Stop and Reverse
- only use in trending markets
- use as exit tool or trailing stop
- BUY - Price hits PSAR from below
- SELL - Price hits PSAR from above
Bollinger Bands
- Middle Band - 20 period moving average
- Upper Band - Middle Band + 2 standard deviations
- Lower Band - Middle Band - 2 standard deviations
- Use with Double Top of Double Bottom - need the first peak to be outside the Band and the second peak to be inside the band
Triangles
- ascending, descending, symmetrical
- breakout may be in either direction in all 3 types of triangles.
- enter when breakout
- stop loss set inside triangles
These indicators and a few others are shown in the example of the ASX 200 below. The conclusion is that there is no obvious trend of the ASX at the moment as the market is trading indecisive with not much direction.
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