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| Alias Born | 04/03/2009 |
Wednesday, October 19, 2011 4:50:14 PM
TZA Chart and discussion:
I trade using multiple indicators, EMA's etc. that vary based on the timing of the chart. However, I also am a pattern trader. I think it's important to have an idea where the market is heading and also know the direction of the chart for the stock or ETF one is trading. Trends and patterns are the best way to do this because it helps one to recognize the setups.
It's important to know that the various indicators also have a timing unique to each indicator. After much trial and error, I figured out the ones I like to use and the order in which I use them. Looking at the formulas that are behind the indicators can help one figure this out or you can just watch them. While it's interesting to use lots of bells and whistles, they can be distracting. I started with one and built on that. Later, I used more and more and then settled on four including Volume with and EMA running through it. I don't think it really matters which ones a trader likes to use as long as he or she knows the timing of the indicator in relation to the others they use and recognizes the signals the indicator provides. Charts are like maps so I use colors to help me find my way. I am partial to Chichi2's charts because he also uses lots of color to help a chartist see what should be popping out at us! In the end, I think all one really needs to use is volume and candles but, I prefer to use a whole lot more :) A very seasoned trader taught me that everything you need to know is in the volume and candles and I still think he is correct if you have a good enough eye for it.
I pretty much only trade TZA and TNA for the time being. By trading both directions, I have become a better trader and learned to recognize setups in the charts. I decided to do this after several years of getting stuck on a stock or ETF because I was partial to it and it was in a downward trend...I got incredibly frustrated and lost a lot of money getting stuck like this!
Distribution channels are very challenging because they whip the price back and forth...note this is what I believe TZA and TNA are experiencing. The channel is moving horizontally across the chart.
Several posters on the boards are trading TZA and TNA so I thought this chart might be useful to you. If you plan to hold these volatile buggers overnight, be wary of the trend and use it in your favor.
Cheers,
Cyn ~
I trade using multiple indicators, EMA's etc. that vary based on the timing of the chart. However, I also am a pattern trader. I think it's important to have an idea where the market is heading and also know the direction of the chart for the stock or ETF one is trading. Trends and patterns are the best way to do this because it helps one to recognize the setups.
It's important to know that the various indicators also have a timing unique to each indicator. After much trial and error, I figured out the ones I like to use and the order in which I use them. Looking at the formulas that are behind the indicators can help one figure this out or you can just watch them. While it's interesting to use lots of bells and whistles, they can be distracting. I started with one and built on that. Later, I used more and more and then settled on four including Volume with and EMA running through it. I don't think it really matters which ones a trader likes to use as long as he or she knows the timing of the indicator in relation to the others they use and recognizes the signals the indicator provides. Charts are like maps so I use colors to help me find my way. I am partial to Chichi2's charts because he also uses lots of color to help a chartist see what should be popping out at us! In the end, I think all one really needs to use is volume and candles but, I prefer to use a whole lot more :) A very seasoned trader taught me that everything you need to know is in the volume and candles and I still think he is correct if you have a good enough eye for it.
I pretty much only trade TZA and TNA for the time being. By trading both directions, I have become a better trader and learned to recognize setups in the charts. I decided to do this after several years of getting stuck on a stock or ETF because I was partial to it and it was in a downward trend...I got incredibly frustrated and lost a lot of money getting stuck like this!
Distribution channels are very challenging because they whip the price back and forth...note this is what I believe TZA and TNA are experiencing. The channel is moving horizontally across the chart.
Several posters on the boards are trading TZA and TNA so I thought this chart might be useful to you. If you plan to hold these volatile buggers overnight, be wary of the trend and use it in your favor.
Cheers,
Cyn ~
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