You're analyzing stock price trends with limited time. How do you prioritize conflicting signals effectively?

One of the most important things I taught myself over the years was drawing trend lines. Seeing patterns, and being able to form a thesis based off these trends and patterns. At first glace drawing trend lines is rather confusing. Where to draw them from? How do I know they're not arbitrary, or they're correct? Well, the most important part of a trend line is what I call validations. Validations are simply how many times price action (your candle, graph, renko bar) touch said trend line. The more touches, the more valid the trend line. You need at least two. One at the start of the trend, and one closer to the end of the Y (time) axis, but really, to me, three makes a trend, and more than that just strengthens your trend thesis.

Conflicting signals show up in sideways markets and low-volume markets. Establish that you are not dealing with either of these scenarios. Once established make sure you are using the right strategies and indicators with the correct settings to match the market.

Trendlines and patterns on larger timeframes reveal the reactions of participants to specific price levels in a stock or commodity. I prefer analyzing trendlines on these extended timeframes as they reflect the gradual evolution of price movements. Instead of focusing on a precise line, I consider broader ranges since pinpointing an exact price where the trend changes is challenging.

Para empezar, cuando el tiempo es limitado, yo no tomaría una decisión. No es razonable esperar un buen resultado con un análisis a la rápida. Dicho esto aquí 3 puntos sobre líneas de tendencia: 1)Lo que buscas es ver hasta dónde el precio pueda rebotar sin cambiar la tendencia (es decir, si se rompe no forzosamente ha cambiado la tendencia, también considera solo una desaceleración). 2)Mientras más alto el time frame mejor la se?al. Los rebotes en time frames cortos suelen ser más un accidente de tiempo que una decisión sostenida por los operadores. 3) En mi experiencia personal los rompimientos en 3 pasos (rompimiento pullback y retomar nueva dirección) son la mejor se?al.

Moving averages, just like any indicator, are inputs into the larger question of price action. It's easy to get overwhelmed with the the many forms, applications, and types of MA's; In general, a moving average gives you a consensus - Meaning if price action is higher than X moving average, the price action, and trend are likely moving higher. If they're below X moving average, the opposite. For me, moving averages denote price action targets in day trading; Large price movements or volatility tend to be drawn to these targets, and this is important, because so many people use them. My preferred time periods for moving averages are 5, 13, 20, 50, 100, and 200. Moving averages should be the basis in which all of your other indicators as set.

Moving averages simplify the analysis by indicating potential retracement levels, as they track the mean values of price action and help us understand "reversion to the mean" movements. They are also valuable for estimating trend strength and retracement levels. I use the 9, 21, 50, 100, and 200 EMAs, which have proven effective for the indices I trade.

En mi opinión son indicadores lentos, hay mejores indicios de cambio de tendencia en la lectura de la acción de precio (formación de patrones de velas, seguimiento a swings y sus retrocesos, etc) Pero por convención las medias móviles de 100, 200 y 300 períodos pueden ser potenciales zonas de soporte o resistencia.

Volume is a fundamental part of technical analysis. Being able to effectively read, parse, and apply information from volume is crucial to be able to form a trading thesis, and subsequently and trading plan. The problem is, is that most people tend to overthink volume. Generally volume comes in two flavors - bids and asks. And the volume bar will close either positive (green) or negative (denoting more asks, or red) at the close of said chart period. But most importantly volume shows participation. Participation can negate or validate a trading thesis. If there is a large move in price action with very little participation generally said move is easily retraced and not advisable to jump into.

Volume data and open interests can be interesting to figure out various price zones in which market participants are interested, they can be used as a confirming tool when there is a larger volume at a breakout/breakdown/reversal/retest, this can act as as factor which can help confirming your leading strategy in active open market. when considering contracts we also consider the open interest and how the buildup or unwinding occurs but this is more complicated than volume.

Yo creo que el aporte más fuerte que te puedo dar sobre el tema del volumen es ?Solo es válido si se negocía con un activo intercambiado en un piso de remate! Es decir para cosas como el Forex, el indicador de volumen es inútil pues será reemplazado por el número de cambio de precios en el período o a lo mucho (pocas veces pasa) el volumen negociado dentro de un broker exclusivamente. En este tipo de activos, las divergencias de momentum suelen ser un buen reemplazo a las indicaciones de volumen.

RSI and MACD are momentum indicators. Personally, I use RSI to gauge active momentum. However, both indicators have limitations as they are lagging and rely on past data to generate values. Their primary utility lies in estimating divergence across various price ranges, helping to assess the relative strength of the current move compared to previous ones. They are particularly useful after consolidation periods but should not be solely relied upon, as they are not entirely reliable.

This is by far my favorite - patterns. Patterns are really almost a science (by in which I highly recommend the book "The Art and Sciene of Technical Analysis"). And can give you clues to future price action based off of hundreds of years of historical price action on charts of various datasets. There is no way I'll be able to fit this into 750 characters. But, remember patterns are dependent on timeframe, and need validation from other indicators such as volume, trend, and offer potential price targets and if you can see it, so can everyone else. So be wary of the "obvious" trade.

Candlestick patterns are highly effective for gauging a ticker's reaction at specific price levels. Analyzing lower-timeframe candles can be erratic and hectic, so it's beneficial to focus on larger timeframe candles and understand multiple candlestick patterns. For instance, a double inverted hammer on a larger timeframe might indicate a double top structure on a lower timeframe, suggesting that sellers are active at that price. Combining candlestick patterns with volume indicators is the best way to confirm the significance of a candle, though accuracy can vary with just these two factors.

Lo más importante sobre patrones de velas es: 1) no se usan en exclusiva, como todo en el análisis técnico, un patrón de reversal o de continuidad sacado de contexto no aporta más que problemas. Lo mejor es leer los patrones de reversal para confirmar lo que otras se?ales de análisis técnico occidental te indiquen. 2) igual que con las líneas de tendencia, mientras más alto el marco de tiempo más confiable el patrón (sobre todo para los patrones con velas no decisivas) por ejemplo una hammer, es mucho más relevante en un gráfico de 1 día que en uno de 15 minutos, por el mismo efecto, en los time frames cortos es más probable que estés observando un accidente de tiempo en lugar de una decisión sostenida de un grupo en control del precio.

This is one thing I constantly see new traders falling into as an attrition trap. They'll have a solid thesis, trading plan, but they'll immediately turn red due to the broader market moving against their trade. Pay attention to the broader market, to the news (and the algorithms trading it) and try and keep your finger on the pulse of the general market sentiment as best you can. The key is not joining the herd, but also knowing when momentum will pay. For instance, in day trading, if a company has a great earnings call the day before, gaps up, but the broader market is red that is most likely a good short (for a gap fill at the very least), as opposed to a great long due to broader market context being negative.

Totalmente de acuerdo, aún cuando el análisis técnico es un ejercicio reactivo, es decir, planteamos escenarios dónde reaccionar a si tal o cual cúmulo de se?ales aparece, claro está que hay momentos donde es esperable que el precio reaccione más vigorosamente (por ejemplo después de un anuncio de inflación o de acción de un creador de política monetaria), y hay se?ales técnicas que podrían ser falsas o nulas cuando se dan cerca y mientras se está a la espera de uno de estos eventos programados. Por eso siempre es importante antes de iniciar tu búsqueda de se?ales, entender en qué modo está el mercado ?es pro apetito por el riesgo o pro cautela? y el mercado está caminando por un anuncio reciente o a la espera de uno.

Sentiment in either market conditions or news is another factor to consider. It can serve as an indicator to make huge windfalls. It can also break otherwise sound trading models. This has the use of catching opportunities that otherwise would be very difficult if not impossible to notice if using more traditional models. These models have an important place, but so does sentiment.