Hi Kareem,
Thank you for showing a chart of my default setup.
If I may, there is one setting that I would change - the 21 period RSI is way to sluggish in defining the RSI levels - using a 9 period or possibly a 14 period would be more appropriate.
Overlay a 9 period on the 21 period and see the difference - then refer back to my earlier posts on RSI S/R levels, they work very well (well at least for my stocks)http://cdn.forexfactory.com/images/icons/icon7.gif
My layout may look a bit cluttered to some, but I am a bit lazy, I let my indicators do the work, I have complete faith in them as I know them pretty well.
All I need is a quick glance at a chart to know if there is a possible trade. No need to draw new price S/R or new Fibonacci lines etc etc
For me , trading S/R is the name of the game and the RSI and Bollinger Bands define them excellently - no ifs, buts or maybe
The stochastic is just a timing tool
However - PRICE IS KING, it must confirm any analysis i.e. it must show follow through in the direction of the analysis before taking or exiting a trade.
The RSI must be one of the most versatile and informative trading aids available, and well worth the effort required to understand its nuances
Trade management is what determines whether or not we are profitable, discipline and low risk trades determine whether or not we stay in business
I hope the above will be of use to some readers - its only my opinion.http://cdn.forexfactory.com/images/icons/icon10.gif
Don't worry, be happy
Peter
Thank you for showing a chart of my default setup.
If I may, there is one setting that I would change - the 21 period RSI is way to sluggish in defining the RSI levels - using a 9 period or possibly a 14 period would be more appropriate.
Overlay a 9 period on the 21 period and see the difference - then refer back to my earlier posts on RSI S/R levels, they work very well (well at least for my stocks)http://cdn.forexfactory.com/images/icons/icon7.gif
My layout may look a bit cluttered to some, but I am a bit lazy, I let my indicators do the work, I have complete faith in them as I know them pretty well.
All I need is a quick glance at a chart to know if there is a possible trade. No need to draw new price S/R or new Fibonacci lines etc etc
For me , trading S/R is the name of the game and the RSI and Bollinger Bands define them excellently - no ifs, buts or maybe
The stochastic is just a timing tool
However - PRICE IS KING, it must confirm any analysis i.e. it must show follow through in the direction of the analysis before taking or exiting a trade.
The RSI must be one of the most versatile and informative trading aids available, and well worth the effort required to understand its nuances
Trade management is what determines whether or not we are profitable, discipline and low risk trades determine whether or not we stay in business
I hope the above will be of use to some readers - its only my opinion.http://cdn.forexfactory.com/images/icons/icon10.gif
Don't worry, be happy
Peter