Apr 22, 2021
The best terminal for trading strategies that use indicators for technical analysis by [ThinkOrSwim (TOS) Rangers]
Trading strategies using technical analysis indicators and other tools
To put it simply, technical analysis is predicting future price changes based on its previous fluctuations, which are reflected graphically in your trading platform. For example, I use the ThinkOrSwim (TOS) platform for technical analysis.
There are many trading strategies using technical analysis indicators and using several instruments at the same time. Such strategies involve a mathematical approach to trading on the stock exchange and are very popular in the classic stock market.
All indicators can be roughly divided into 5 groups.
- Volume indicators. With the help of such indicators, you can easily determine the interest of investors in a particular asset and identify speculative manipulations. For example, here you can find the volume indicator of accumulation and distribution (AccDist) and other rare technical analysis indicators for ThinkOrSwim.
- Trend indicators (determine the current trend direction). If you are looking for trend indicators, I recommend checking out the article on Three indicators for the Thinkorswim platform to help you find and track trends. In it, we looked at how to identify possible trends using ThinkOrSwim indicators, how to identify a trend, how to add a moving average indicator (SMA and EMA) to the Thinkorswim platform, talked about the Moving Average Convergence Divergence (MACD) and the Thinkorswim Parabolic SAR indicator.
- Oscillator indicators are quite popular and work best in range markets. Using them, you can find out when the market is overbought or oversold, some use oscillator indicators to determine when open positions are closed. On charts, such indicators are depicted as a line or a histogram. It will also be useful for you to know how to install and use the RSI indicator (oscillator) in the ThinkOrSwim trading platform.
- Information indicators. Everything is obvious here — such indicators only provide information, there are no direct signals to enter the market. Information indicators can also include the release of important news in your trading terminal if there is one (ThinkOrSwim, for example, has a convenient news feed).
The following are very popular among technical analysis indicators: Moving Average, RSI, Stochastic, Bollinger Bands lines. There is even an interesting strategy for medium-term trading (EMA + RSI + Stochastic).
What methods are used in technical analysis
Technical analysis methods can be roughly divided into graphical, mathematical, candlestick and volume analysis.
1. With the help of the charts, we can track the places of formation of various patterns that indicate a certain situation and trend in the market. The disadvantage of the graphing method is that there is a possibility of missing the moment to open a deal since it is possible to start analyzing the pattern only after its full appearance.
2. Mathematical or indicator methods of technical analysis are based on algorithms and mathematical formulas. Thus, price changes can be predicted thanks to various indicators created using formulas.
3. The candlestick method of analysis is to predict price fluctuations based on Japanese candlesticks that are displayed on the chart.
4. Volume analysis — price movements can be predicted by the volume of transactions for a certain period.
The best service for using trading strategies with various technical analysis indicators
In my work for technical analysis, I use the proven ThinkOrSwim service, since I believe that this is the best graphical and trading platform for selecting and scanning stocks in real-time with high-quality customizable charts and real-time quotes, which has no equal. Suitable for training, testing strategies, and for quick analysis and search for entry points.
The following instruments are available on the platform: NYSE, NASDAQ, CME, stocks, options, ETFs, futures, currencies.
The platform is reliable and secure (broker TD Ameritrade has been on the market since 1971), but there is one caveat: in 2017, the company restricted access for non-US residents. We found a solution and made the service available to everyone, regardless of the territory in which you live and what country you are a citizen of.
If you are looking for a powerful graphics platform for technical analysis or for some reason you are not satisfied with the current one, you can try our demo version for 30 days absolutely free of charge. The only limitation is a 20-minute delay in quotes.
All information in our profile contacts👆. Go, test the platform and draw your own conclusions.
