How do you identify trading opportunities with high risk-reward ratios using TA indicators?

One of the best ways to have high reward using TA is to join the trend at the very beginning. Some technical analysts like myself do more of pure price action interpretation while there are few times some others may feel compelled to use TA indicator to spot that moment. Indicator like moving average and MACD can help to achieve this identification, by the golden or death crossing strategy of moving average and MACD line & signal line crossing above the baseline of the MACD strategy respectively. As well, RSI or Stochastic oscillators can be combined with divergence strategy to identify earliest trend reversal/new trend begin in the market.

Finding good trading chances with high rewards and manageable risks using technical analysis means looking at charts smartly. Traders check patterns, lines, and important levels on the charts to decide when to buy or sell. They also use tools like the Relative Strength Index (RSI) or Moving Averages to see how the market is doing. The idea is to pick moments where the possible profit is more than the risk. It's like trying to get more from a trade than what you might lose. Smart traders use different tools to look at the history of prices and figure out the best times to make their moves.

A combination of moving averages and the Fibonacci retracement tool can help identify pullbacks in trending markets. Waiting for the pullback to significant areas helps the trader enter the market at a more desirable position, rather than potentially buying the top or selling the bottom. This in combination with key levels and psychological price numbers can be a lot more powerful than some other lagging indicators. A push from point A to point B, followed by a pull-back to point C can allow the trader to identify a trend, before waiting for the retracement to enter the market. Many novice traders mistakenly spend their early days looking for tops and bottoms in markets using lagging indicators such as RSI or MACD.

Trend indicators in financial markets are tools used to assess the direction of price movements in an asset. They help identify whether the trend is upward, downward, or sideways. Common trend indicators include moving averages, relative strength index (RSI), moving average convergence divergence (MACD), average directional index (ADX), Bollinger Bands, Parabolic SAR, Ichimoku Cloud, and on-balance volume (OBV). Traders use these indicators in technical analysis to make informed decisions about entering or exiting positions based on identified trend directions. It's common to use a combination of indicators for more accurate analysis.

In my humble experience, I find using reversal setups (buy low/support sell high resistance) has better reward-to-risk ratio as compared to breakouts (buy high/breakout of immediate resistance, sell higher/next resistance level) The challenge is to get a good reversal setup with good winning ratios. I normally use Fibonacci retracement to find support and reversal patterns like candlesticks on a lower time frame to confirm the reversal.

Il existe plusieurs indicateurs de tendance ou de momentum dans l'analyse technique qui permette à un investisseur de prendre une décision : 1- La MM est un indicateur reflétant la valorisation moyenne d'un titre sur une période donnée. Sa facilité d’utilisation et d’interprétation en font un outil très prisé des chartistes 2- Le RSI en trading est la mesure de la vitesse et l'ampleur des variations récentes du cours d'un titre. Il sert à déterminer s'il est en surévaluation ou sous-évaluation, c'est-à-dire en surachat ou survente. 3- La MACD est un indicateur de retard utilisé pour localiser les tendances du marché. Il se compose d'un histogramme et de deux lignes dérivées de moyennes mobiles ...

The momentum indicators like RSI and MACD start giving early signals for a fading trend and a possibility of trend reversal. You can see them in form of divergences but don't trade the divergences blindly as when these divergences fail they give a very wild move. So to trade divergences in momentum indicators we can use price action and also multi timeframe analysis to fine tune our entry.

Trend indicators are like guides that show if the market is going up, down, or staying the same. Imagine them as maps for traders. On the other hand, momentum indicators, like the Relative Strength Index (RSI), help us know how fast prices are changing. It's like a speedometer for the market. Traders use both these tools together to understand where the market is going and how quickly it's getting there. It's a bit like having a map and a speed checker to make smart moves in the world of trading.

Momentum indicators are TA indicators that measure the speed and force of price movements. Some examples of momentum indicators are the relative strength index (RSI), the stochastic oscillator, and the moving average convergence divergence (MACD). Momentum indicators can help traders identify trading opportunities with high risk-reward ratios by showing them when the market is overbought or oversold, and when a reversal or a continuation is likely. For example, traders can use the RSI to spot divergences between price and momentum, which can indicate a potential reversal. Traders can also use the stochastic oscillator or the MACD to identify crossover signals, which can indicate a continuation of the trend

Momentum indicators in financial markets help assess the strength and speed of price movements in assets. Common indicators include Relative Strength Index (RSI), measuring overbought and oversold conditions; Moving Average Convergence Divergence (MACD), indicating trend strength and direction; Stochastic Oscillator, identifying potential overbought or oversold situations; Momentum Oscillator, measuring the rate of price change; Commodity Channel Index (CCI), gauging deviations from statistical averages; Rate of Change (ROC), indicating the speed of price movements; Williams %R, highlighting overbought and oversold conditions; and Average True Range (ATR), measuring market volatility.

Volatility indicators are like checking if the market is calm or a bit crazy, using tools like Bollinger Bands. They tell traders how much prices are jumping around. Then there are oscillators, such as the Moving Average Convergence Divergence (MACD), which show if the market is moving fast or slow. It's like knowing if it's a speedy race or a casual stroll in the trading world. By understanding these indicators, traders can adjust their plans based on how wiggly or calm the market is. It's a bit like checking the weather before deciding whether to grab an umbrella or enjoy a sunny day in the world of trading.

Volatility indicators in financial markets measure the extent of price variations over time, aiding traders in assessing risk and market conditions. Common indicators include Average True Range (ATR) for average price range, Bollinger Bands showing widening/narrowing bands, Volatility Index (VIX) as a fear gauge, Chaikin Volatility for spread comparisons, Historical Volatility for past market behavior, Standard Deviation indicating price dispersion, Relative Volatility Index (RVI) for trend reversals, Keltner Channels based on average true range, Price Rate of Change (PROC) for percentage change, and Market Volatility Index (MVI) comparing current to historical price movements.

Oscillator indicators in financial markets fluctuate within a set range, providing insights into momentum, overbought or oversold conditions, and potential trend reversals. Common oscillators include Relative Strength Index (RSI) for overbought/oversold signals, Stochastic Oscillator for price range comparison, Moving Average Convergence Divergence (MACD) for trend and momentum, Williams %R for overbought/oversold conditions, Commodity Channel Index (CCI) for deviation from average, Relative Vigor Index (RVI) for trend strength, Average True Range (ATR) for volatility, Money Flow Index (MFI) for money flow strength, and Relative Momentum Index (RMI) for refined momentum analysis.

Pattern indicators in financial markets assist traders in identifying specific chart patterns formed by price movements. Common patterns include Head and Shoulders for potential trend reversals, Double Top and Bottom for reversal signals, Triangle Patterns for breakout indications, Cup and Handle for bullish continuations, Wedges for trend reversals, Flag and Pennant Patterns for short-term consolidation, Rectangles and Channels for trend continuation, Gartley Pattern for harmonic reversals, Candlestick Patterns for market sentiment, and Fibonacci Retracement for support/resistance levels. Traders use these indicators to visually recognize patterns on price charts, about potential market movements and refine their trading strategies.

Indicators are derivatives of price. It is therefore not possible to have leading technical indicators. Pattern recognition is therefore the soundest way to develop a strategy with substantial risk reward profile.

I love using pattern-based indicators as they identify patterns of market emotions that repeat. Technical indicators are mathematically based indicators that do not indicate market emotions. Nevertheless, a combination of both pattern and technical indicators provides a more holistic price analysis.

All patterns Indicators do not work in every security, index,commodities or forex. So If You're Using Triangles in Forex It Works Good With High RR Ratio But I also Found That on Nifty 50 Index Triangles Not Works Good & Also RR Ratio Not Favorable Due To Gap Up & Gap Down Situation.

Technical analysis go a long way in helping you identify winning trades but they are not organic ad they fail when they fail to align with market movers. High risk trades should only be taken when the trader aligns with the market movers by deploying and looking at banks positions on the cftc website and retail manipulation.

In my opinion, prioritizing price action during trading, while utilizing technical indicators for confirmatory signals, aligns with a sound market approach. While technical indicators offer valuable insights, relying solely on formulas can be limiting, as market movements are intrinsically linked to human emotions. Price bars, volume data, and price itself present the most fundamental information, and the ability to read these elements effectively forms the bedrock of successful trading. Additionally, incorporating support and resistance levels alongside technical indicators can further strengthen your analysis and decision-making.