Understanding Futures Options Spreads
There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy.
Another way is to buy and sell options based on their deltas. Some of these trades are called delta neutral trades. Delta neutral trades are option trades in which the total delta of all the options is Zero. At the money options have a delta of 50.
If you buy an at the money call, you will have a
delta of +50.
If you sell an at the money call, you will have a
delta of -50.
If you buy an at the money put, you will have a
delta of -50.
If you sell an at the money put, you will have a
delta of +50.
Basically, the deltas will be determined by where you want the market to go. Think of it this way: If you sold an at the money call option, where would you want the market to move to? You would like it to go lower. So, you would have a delta of -50.
If you look at most at the money options, you will find that they are usually not at 50. That is because they are not exactly at the money. We still refer to these as the at the money options because they are the ones that are the closest to being there. It might have a delta of 47 or 53.
If you purchased one at the money call and one at the money put, you would be delta neutral. The call will have +50 deltas and the put will have -50 deltas. The total is zero. This is a very simple delta neutral trade.
Another delta neutral trade is a ratio back spread. An example of this trade would be to sell an option that is at the money and buy a greater number of out of the money options. You might sell one call option at the money (delta -50) and buy 2 call options out of the money (delta +25 each). You would be delta neutral. You would want to put this on for a credit or at even. You can also put it on for a debit but then you would care a little about futures market direction.
If you put it on for a credit or even money and the market was lower at expiration of the options, you would break even or earn a small credit. If you put it on for a debit, you would lose the debit amount if the market was lower at expiration of the options. In either case, if the market went sharply higher, you have a chance for unlimited profit, because you have purchased more options than you sold.
Most futures traders teach that ratio back spreads should be done in the far months only. This is because you have more time to be correct with a big move. The problem that I have found is that you are giving up too much for the time advantage. The options you buy out of the money are not priced at an advantage compared to the ones at the money. You can look at the theta to see how much each option will lose per day or per week.
You can also see that in order to have a lot of time left in the trade, the difference in strike prices between the option you sell and the options you buy are too much. It will take a bigger move before you have unlimited profit potential.
If you are expecting a big move, think differently than the norm and start to look at options that have 20 -40 days left. The options you buy compared to the options you sell, should be priced better. Everything is in relation to something else.
So the next time you hear someone recommending the same old ratio back spreads, take a look at the difference months to see where the real advantage is.
Understanding Calender Spreads In Option Trading
When futures traders speak of putting on calendar spreads, they normally refer to buying the further month options and selling the closer month option. While I can not argue with this, it is not best for all options.
I am going to be general in this here because prices change and I don’t want to cause any confusion.
For out of the money options, you might want to consider doing the opposite. Buy the close month and sell the further month. This is because the theta is advantageous to you if you are buying the front month. The further the months are from each other, the more you have an advantage. Also, figure out the price per day of the option. Which option costs more and which is cheaper per day. You can find options that are equal distance away in strike from the futures but one option is 3 times cheaper per day than the other.
For the at the money options, the regular calendar spreads are the way to go. For strike prices that are far out of the money, the reverse calendar spread is better. One reason is the theta advantage. Another is the price per day.
So keep your eyes open for out of the money options and check their price per day and theta and compare them to different months. If you are looking at different months, make sure that the month you are thinking of buying, is the same amount of strike prices away or more from the underlying, as the one you sell. Meaning, if you buy an option that is 5 strikes away from the underlying, the one you sell should be at least 5 strike prices away from the underlying. This is so if there is a big move, both options will be in the money at roughly the same time.
Understanding The Benefits Of Option Trading Software
If you trade stock options on a regular basis, you might consider utilizing option trading software for a number of reasons. One reason that you might want to use this type of software is because it gives you the ability to breakdown the different types of strategies or scenarios that you might want to use so that you can thoroughly analyze them.
Making a blind decision on a stock options trading strategy can be quite risky because you never really know what can happen. If you use option trading software, you’re at least able to make an educated guess and be somewhat prepared for the actions you are taking because you will have researched them and analyzed the potential outcomes.
With option trading software you have the ability to explore multiple scenarios that you can choose from. This obviously can be very beneficial to you because you have the opportunity of picking the best scenario with the best possible outcome, which is typically the road you want to take.
Most option trading software packages give you the ability to create graphical printouts and detailed reports that you can save off or print for later analysis. This can prove to be very handy if you have a number of different scenarios that you are trying to choose from because you can compare them side by side much easier than you could if you only had a page of numbers to look at. This is a huge benefit that many individuals enjoy when they use this type of software.
When you’re ready to choose the strategy that best suites you, you can test the strategy that you are going to implement so that you can see what the potential outcome might be. Based on these results then you can decide if you need to head back to the drawing board, or if you think your strategy is solid enough to go forward with.
Stock option trading can be a challenging activity as it is, and it can be even more challenging if you don’t have the tools necessary to be able to make educated decisions about the investment strategies that you are trying to implement. If you’d like to be able to make more sound decisions in your trading activities, consider getting your hands on some option trading software. You’ll feel much more confident and secure about your investment decisions and will be ready to move forward with the choices you have made.
A Trading Strategy That Consistently Beats All Major Indexes
Are you looking to outperform the marketplace and optimize your profits but are not sure how to pick the right stocks? Has investing become a chore? Do you discover yourself investing in hot stocks right after they have made their huge move? Would you like to learn how I increased my portfolio by above 400% in under 7 years? Do you want to discover how I have outperformed the marketplace over the past three years by a margin of 5 to 1?
Do You Hate Research? . .
. I do!
I have usually wanted to discover an investment strategy that made sense. An investment strategy in which I do not need to know the intricacies with the industry, predict industry trends or follow specific stocks. How can I get the inside details of what is hot just before the rest with the industry knows? I can’t. Nor do I need to.
Plus, I don’t have that sort of time to commit to in-depth research. Like you, I possess a regular job that I need to devote my time to. I am not a day trader; nor do I want to invest all of my free time about the computer doing research. Often following the stock market and obtaining stock quotes isn’t how I want to spend my free time.
I Prevent Individual Stocks .
.
. they are too unreliable!
Everybody wants to purchase low and sell higher. While millions of people do make funds this way (and many millions loose money), I have found an easier and more effective way to use the market to my advantage. I do not trade in stocks. I do what I can to steer clear of individual stocks. And I consistently beat the market .
. . month after month right after month.
If not stocks, what’s the alternative?
Like several folks, I got heavily involved in the stock industry in the mid to late Nineties. Tech stocks were planning through the roof and I, like everybody else, wanted a component with the action. It seemed an easy way to make funds. Everybody was acquiring rich. You did not need a special investment strategy to beat the marketplace.
Throughout this time, I engrossed myself in the monetary markets. I wanted to learn as a lot as I could without giving up my day job. I was trying to locate the next best tech stock, IPOs as well as the occasional pre-IPO offering. But it was not right up until I discovered options trading that I discovered an investment strategy (The Yager Trading Strategy) that can work in any type of industry . .
. Bull, Bear or stagnant.
That’s right..
.OPTION trading!
And I am not talking about stock options or writing covered calls. Choices trading..
.I started selling alternatives on S&P futures, using different methods and trading strategies. And I did well. Very nicely.
Between July 1998 and January 2000 (a span of 18 months), from my option trading system, I turned an initial $25,000 investment into $167,615. That’s more than 670% increase. And this was not paper funds exactly where you purchase a stock and it has a certain listed value. This was real, taxed income. Profits collected on a monthly basis.
Marketplace fluctuations and volatility have diminished greatly given that then..
.reducing the premiums. Those people types of returns are no longer available, but the option trading strategy is nevertheless extremely sound. I still consistently beat the market. Even the many years the DJIA, Nasdaq and S&P were all down, I posted a lot more than a 22% gain.
Learn the option trading strategy or see tips on how to make funds with this strategy. I describe the strategy and show actual recent trades on YagerInvesting. The information is FREE. No subscription required. This can be a method for risk capital only.
For the preceding 12 months (May ‘06 by means of April ‘07) this is how my strategy, The Yager Trading Strategy, performed:
DJIA—–20.3%
NASDAQ—–14.7%
S & P 500—–17.3%
Yager Trading Strategy—–32.2%
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Stock Choice Buying And Selling Millionaire Principles
INTRODUCTION
Having been trading stocks and shares and options within the capital markets professionally over the years, I have seen several ups and downs.
I have seen paupers become millionaires overnight…
And
I have seen millionaires become paupers overnight…
1 story told to me by my mentor is still etched in my mind:
“Once, there were two Wall Street share market multi-millionaires. Both were extremely successful and decided to share their insights with others by selling their stock market forecasts in newsletters. Each charged US$10,000 for their opinions. A single trader was so curious to know their views that he spent all of his $20,000 savings to acquire both their opinions. His friends were naturally excited about what the two masters had to say about the share market’s direction. When they asked their friend, he was fuming mad. Confused, they asked their friend about his anger. He said, ‘One stated BULLISH and also the other said BEARISH!’”
The point of this illustration is that it was the trader who was wrong. In today’s stock and option market, people can have different opinions of future market direction and still profit. The differences lay inside the stock picking or options strategy and inside the mental attitude and discipline 1 uses in implementing that strategy.
I share here the basic commodity and choice trading principles I follow. By holding these principles firmly in your mind, they will guide you consistently to profitability. These principles will help you decrease your risk and allow you to assess both what you are doing right and what you may possibly be doing wrong.
You may possibly have read ideas similar to these before. I and others use them mainly because they work. And if you memorize and reflect on these principles, your mind can use them to guide you in your share and options trading.
PRINCIPLE 1
SIMPLICITY IS MASTERY
When you feel that the share and options trading method that you are following is too complex even for simple understanding, it’s probably not the finest.
In all aspects of successful share and options buying and selling, the simplest approaches often emerge victorious. Inside the heat of a trade, it’s easy for our brains to become emotionally overloaded. If we have a complex strategy, we cannot keep up with the action. Simpler is better.
PRINCIPLE 2
NOBODY IS OBJECTIVE ENOUGH
If you feel that you have absolute control over your emotions and can be objective in the heat of a commodity or options trade, you are either a dangerous species or you are an inexperienced trader.
No trader can be absolutely objective, especially when market action is unusual or wildly erratic. Just like the perfect storm can still shake the nerves of the most seasoned sailors, the perfect stock market storm can still unnerve and sink a trader very quickly. Therefore, one must endeavor to automate as many critical aspects of your strategy as possible, especially your profit-taking and stop-loss points.
PRINCIPLE 3
HOLD ON TO YOUR GAINS AND CUT YOUR LOSSES
This is one of the most important principle.
Most stock and options traders do the opposite…
They hold on to their losses way too extended and watch their equity sink and sink and sink, or they get out of their gains too soon only to see the price go up and up and up. Over time, their gains never cover their losses.
This principle takes time to master properly. Reflect upon this principle and review your past share and options trades. If you have been undisciplined, you will see its truth.
PRINCIPLE 4
BE AFRAID TO LOSE MONEY
Are you like most beginners who can’t wait to jump right into the commodity and options market with your money hoping to trade as soon as possible?
On this point, I have found that most unprincipled traders are more afraid of missing out on “the next big trade” than they are afraid of losing money! The key here is STICK TO YOUR STRATEGY! Take share and options trades when your strategy signals to do so and avoid taking trades when the conditions are not met. Exit trades when your strategy says to do so and leave them alone when the exit conditions are not in place.
The point here is to be afraid to throw away your money simply because you traded needlessly and without following your share and options strategy.
PRINCIPLE 5
YOUR NEXT TRADE COULD BE A LOSING TRADE
Do you absolutely believe that your next share or options trade is going to be such a big winner that you break your own money management rules and put in everything you have? Do you remember what usually happens after that? It isn’t pretty, is it?
No matter how confident you might be when entering a trade, the stock and options market has a way of doing the unexpected. Therefore, always stick to your portfolio management system. Do not compound your anticipated wins simply because you might end up compounding your very real losses.
PRINCIPLE 6
GAUGE YOUR EMOTIONAL CAPACITY BEFORE INCREASING CAPITAL OUTLAY
You know by now how different paper buying and selling and real share and options buying and selling is, don’t you?
Inside the very exact same way, after you get used to trading real money consistently, you find it extremely different when you increase your capital by ten fold, don’t you?
What, then, is the difference? The difference is within the emotional burden that comes with the possibility of losing more and more real money. This happens when you cross from paper trading to real trading and also when you increase your capital after some successes.
After a while, most traders realize their maximum capacity in both dollars and emotion. Are you comfortable trading up to a few thousand or tens of thousands or hundreds of thousands? Know your capacity before committing the funds.
PRINCIPLE 7
YOU ARE A NOVICE AT EVERY TRADE
Ever felt like an expert after a few wins and then lose a lot on the next stock or options trade?
Overconfidence and the false sense of invincibility depending on past wins can be a recipe for disaster. All professionals respect their next trade and go through all the proper steps of their commodity or options strategy before entry. Treat every trade as the first trade you have ever made in your life. Never deviate from your commodity or options strategy. Never.
PRINCIPLE 8
YOU ARE YOUR FORMULA TO SUCCESS OR FAILURE
Ever followed a successful stock or options strategy only to fail badly?
You are the 1 who determines whether a strategy succeeds or fails. Your personality and your discipline make or break the strategy that you use not vice versa. Like Robert Kiyosaki says, “The investor may be the asset or the liability, not the investment.”
Understanding yourself first will lead to eventual success.
PRINCIPLE 9
CONSISTENCY
Have you ever changed your mind about how to implement a strategy? When you make changes day after day, you end up catching nothing but the wind.
Stock market fluctuations have more variables than can be mathematically formulated. By following a proven strategy, we are assured that someone successful has stacked the odds in our favour. When you review both winning and losing trades, determine whether or not the entry, management, and exit met every criteria within the strategy and whether or not you have followed it precisely before changing anything.
In conclusion…
I hope these easy guidelines that have led my ship out with the harshest of seas and into the best harvests of my life will guide you too. Good Luck.
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Stock Market Guide
Stock market is an inquisitive place for numerous. It is because the place has given birth to numerous millionaires and is also responsible for turning millionaires to locals. Thus the bulls and bears have always been charismatic. Now millions of people invest inside the commodity market to make good money. The aura with the place is such that it is swarming with people any hour from the day and any season from the year. But only few know that how the stock market came into existence or what actually are its origins.
A short encounter with the past
The oldest commodity certificate was issued in favor of a Dutch company in 1606. The purpose of this company was to benefit from the spice trade between India as well as the Far East. During the 18th and the 19th centuries the trade of spices drifted to England when Napoleon reigned over the place. With the development of United States of America as a colony to British and Alexander Hamilton (the initial US secretary from the Treasury) flourished the American Commodity Exchange. Hamilton played a crucial role in encouraging the buying and selling within the Wall Street and Broad Street in New York. The New York Commodity and Exchange Board now popularly identified as the New York Share Exchange was organized by the traders of New York in 1817 when trade and commerce bloomed there.
A precise survey from the Western commodity market
• The Wall Street- a place where the whole of 18th century trade and commerce took place, Wall Street is a recognized place across the globe. The street was termed as Wall Street since it ran alongside a wall that was taken as the northern boundary of New Amsterdam in 17th century.
The Wall Street is identified for the J.P. Morgan’s million dollar merger that created US Steel Corporation, the ruinous crisis that resulted in Great Depression as well as the “Black Monday” of 1987.
• The NYSE or the New York Commodity Exchange is perhaps the foremost and so the oldest share trade in United States that is believed to be born in 1792. The significant aspects related to NYSE include the Buttonwood Agreement when 24 stockbrokers and traders of New York signed this accord and established the New York Commodity Exchange and Securities Board which is now recognized as the NYSE; the considerable swings that the NYSE saw during the 20th and 21st century; the hitting from the 100 and later even 1000 mark by the Dow around 1971 and also the mark of 10,000 that the Dow scaled in 1999.
• NASDAQ is the National Association of Securities Dealers Automated Questions. It can be an apparent or virtual stock market where all trading is done through the electronic media. NASDAQ, the global as well as the largest electronic stock market today was very first established in 1971 in United States in the time when computers were not as developed as they may be today and it was very difficult to compute. The main exchange of NASDAQ is in United Sates while its branches can be found in Canada and Japan and it’s also linked to markets of Hong Kong and Europe. NASDAQ functions by purchasing and selling the over- the- counter or OTC shares.
• AMEX-was discovered in 1842. The putative father from the institution is Edward Mc Cormick (the commissioner of SEC) who endowed it with its current name. It started its journey as the New York Curb Exchange and its name is factual. The AMEX in contrast to the NYSE operates with the small and more dynamic firms some of which even make it to the NYSE board.
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Stock Diversity With Just One Purchase
No matter whether or not you are a seasoned investor or a novice in the stock-trading game, there’s a well-liked choice that may suit your portfolio-offering the stability of proven performers you know, plus the growth possible of innovative firms you may not have heard of yet. It also has extra benefits like low expenses and tax efficiency.
QQQ-the trade name for the NASDAQ-100 Index Tracking Commodity (NASDAQ: QQQQ)-is a kind of expense product identified as an exchange traded fund (ETF). Using a trading volume averaging 99.7 million shares per day, it can be one of the most actively traded, listed equity security inside the U.S.*
Active investors appreciate the simplicity and liquidity of buying and selling a basket of stocks and shares in just one transaction. Long-term investors appreciate that the fund is depending on NASDAQ’s 100 largest non-financial firms and diversified across sectors. The expense covers a range of industries, which includes computer hardware and software, telecommunications retail/wholesale trade, biotechnology and transportation, using a simple invest in of an individual share.
Additionally, QQQ is eligible for 401(k) and IRA investments, producing it attractive for any long-term buy-and-hold investment strategy. And simply because QQQ represents the collective performance of these businesses, the impact of price fluctuations caused by a certain company is an additional reason QQQ is also attractive.
Direct Purchases
For the very first time, investors who invest in the same dollar amount of shares at normal intervals can have direct access to an ETF for example QQQ. QQQDirect is an inexpensive on the internet investing service that offers one plan buy of QQQ per month free of charge of any charge. It can be a fractional share, dollar-based support that permits as little as $10.00 per month to be invested with QQQDirect’s AutoVest Schedule.
“NASDAQ has played a substantial role inside the equification of America and QQQDirect is yet one more way we can break down barriers to commodity ownership,” said NASDAQ Global Funds CEO John Jacobs. “By buying a single share of QQQ, dollar-cost typical investors will own a portfolio of NASDAQ’s industry-leading companies-including the likes of Microsoft, Starbucks and Dell.”
“We believe this new assistance expands the capacity of investors to make sound investment decisions,” stated John Markese, president from the American Association of Individual Investors (AAII).
“As an advocate of investor education and empowerment, AAII views the introduction of QQQDirect as a new, cost-efficient chance for individuals to practice the principles of sound investing.”
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Stock Brokers — Just The Facts
Most of the buying and selling on the stock marketplace is handled by stock brokers on behalf of their clients, who are the investors. Many different types of brokerage services are available.
Full-Service Brokers
“Full-service brokers” offer a variety of ways to help clients meet their investment goals. These brokers can give advice about which stocks to buy and sell, and often have large research departments that analyze market trends and predict stock movements, for their clients.
Such services are not free, of course. Full-service brokers charge the highest commission rates in the industry. Your decision whether to use a full-service broker will depend on your level of self-confidence, your knowledge of the stock marketplace, as well as the number of trades you make regularly.
Discount Brokers
Investors who wish to save on commission fees typically use discount brokers. Brokers in this category charge much lower commissions, but they don’t offer advice or analysis. Investors who prefer to make their own trading decisions, and those who trade often rely on discount brokers for their transactions.
Online Brokers
Taking the discount concept 1 step further, online brokers are the least pricey way to trade stocks. Both full-service and discount brokers usually offer discounts for orders placed online. Some brokers operate exclusively online, and they offer the best rates of all.
Account Requirements
Whichever type of broker you choose, your first order of business will be to open an account. Minimum balance requirements vary among brokers, but it is usually between $500 and $1000. If you’re shopping for a broker, read the fine print about all the fees involved. You’ll find that some brokers charge an annual maintenance fee while others charge fees whenever your account balance falls below a minimum.
Cash Or Margin?
Brokerage accounts come in 2 basic types. The “cash account” offers no credit; when you buy, you pay the full stock cost. With a “margin account,” on the other hand, you can buy stock on margin, meaning the brokerage will carry some from the cost. The amount of margin varies from broker to broker, but the margin must be covered by the value from the client’s portfolio.
Any time a portfolio falls below a specified value, the investor will have to add funds or sell some stock. A greater opportunity exists for realizing gains (and losses) with margin accounts, because they allow investors to buy much more stock with less cash. Involving greater risk than cash accounts, as they do, margin accounts are not recommended for inexperienced traders.
Selecting The Right Broker For You
You should carefully consider your needs as an investor before making the choice of a broker. Do you wish to receive advice about which stocks to buy? Are you uncomfortable making trades on the Internet? If so, you will be best served by a full-service broker. If you are comfortable buying on the Internet, and you have the knowledge and confidence to make your own trading decisions, then you will be better off with an online discount broker.
After deciding which type of broker you want, do some comparison-shopping between competitors. Significant cost differences can show up when you factor in all the annual fees and brokerage rates. Estimate how many trades you expect to make in a year, how much cash you can deposit into your account, whether you want to use margin accounts, and which services you need. Armed with this information, you’ll be prepared to compare your actual costs for various brokers, and to make an educated choice.
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Basics of Binary Day Trading Strategy
If you are looking for different investment stategies, you may have heard of option trading. This type of trading appeals to many investors but you need to know the risks as well as the rewards. You have to abide by all the terms and conditions associated with option trading. Option, as the name suggests, permits the investors a choice to modify their trade contact in any manner they like. There are many kinds of options available in the day trading market to choose from. These different types give you the much needed flexibility in your trading. Binary options are an interesting type of option to consider.
If you are willing to take a risk, perhaps, the best option may be a binary option. The largest advantage of this type of trade is to allow the investor to have a short expiration period. Investors don’t need to hold the investment for long periods of time. These are termed as binary because they provide their investors with only two types of payouts. These are also called digital options because the investor can either have everything or end up having nothing. Binary options expire on an hourly basis.
What is a binary option strategy? In it once you have selected the security on which you want to invest, you decide the amount of the investment. Note that there is a trading limit of $15000 for binary trades. Do your proper research to determine which way the market will move for your investment. This prediction is set as a condition in a binary contract which must be met at the time of expiry, so as to receive the full payout of the contract. Based on the probability of occurrence of your predicted scenario, the broker will offer you an appropriate premium for the binary option. If you like the deal you can go ahead or otherwise you are not obligated to buy the option. You can close the deal whenever you wish. Here, the amount of increase or decrease in the underlying value plays no role. Instead, the direction of movement of the underlying is of prime importance. Hence, before any investor decides that binary option trading are a reasonable investment instrument, they need to do their homework. One needs to do a full analysis of the security and of the current market trends.
You can get many different kinds of binary options. You can choose the one that best suits your interests. However, the main kinds include: no-touch, one-touch, double no-touch and the double one-touch binary options. In one-touch option, the expiration date and the expected target value is set. In no-touch, the profit value is set by the trader which can be received only if the underlying fails to reach the set price point before a certain time period. In double one-touch, traders set two price points and if the underlying reaches either in specified time, the set profit is made. Double no-touch is exactly the opposite of double one-touch.
The binary trading tool has become increasingly popular because of the advantages it offers. Binary trade is a one-sided trade so you do not face the problem of closing out the position. It is in the hand of the investor to lay down the specifics of the trade. Though you can lose your full investment with binary options, you can not lose more than that as it is with normal options.
The Secret To Technical Analysis
Technical analysis of the stock market, or any other market such as Forex, futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.
You only have to think back to major stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.
Just by reading the balance sheet and other quaterly reports they release gives you a very poor insight into the real health of the company. Whereas the technical analysis charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.
So what are the secrets to technical analysis?, I’m about to tell you, here are my golden rules:
* Only use 3-5 simple technical analysis indicators
* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective
* After selecting your indicators and parameter settings don’t mess with them.
The real secret to technical analysis is to get VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.
The fact is that in any market, for each bar period, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying the same information and so are redundant.
For the record my set of indicators are:
* 4 Simple Moving Averages
* Bollinger Bands
* MACD
* Stochastics
But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:
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