TSD Trading!
Hello! Well this page is here to to explain the simple, but effective strategy of TSD Trading! Basically it amounts to a strategy of drawing conclusions based on technical analasis, and putting these conclusions into money-making decisions!
Screens
Well When I screen I look for big moves on heavy volume, a trend, a breakout, or a uncharecteristic move such as a big upward push in a company that makes jewlery in the middle of a recesion, that means that the smart money (insiders, or people paying tons of money to get the best information) is buying, so something good is going to happen, or there is something that they know, nad we don't.
Trendlines
Trendlines are one of the most important tools in the technical traders arsenal. Draw trendlines from swing highs and lows, points at wich the stock has churned or channeled, and varios other key places. Draw your trendlines at an angle, as opposed to strait. Finally, trust your trendlines, they will not lead you astray.
Moving Averages
Moving averages are an important resource to the trader. They can act as support and resistance, and are very helpful in determining what to do in the current situation of a stock. Never try to predict the actions of a stock, only react to what the stock has done.
Charting Patterns
Here are some basic charting patterns:
Bullish: Pullback Buy: when a stock has had a major run up in price, and then pulls back into the moving averages, Acending Triangle: basically when thier is a series of increasingly tightening swing highs and lows, Highbase breakout: when a stock has a swing high, and then consolodates for a bit, Bull Flag: when a stock moves up then makes an orderly move down, like a highbase breakout, but decending in price, Double bottom:when a stock moves down, rebounds, then moves down to the same level again. All of these bullish patterns have bearish counterparts, basically exactly opposite in name and price action.
Studies
Ok here are the moving averages that I like to follow: EMA, MA, Parabolic SAR, Acc./Distrib., MACD hist., and RSI EMA. Try to use a site that allows you to hide your studies, because once you apply alot of studies it's hard to see the price action, and price action is also very important.