Is technical analysis really complicated?

No. not at all.

You need to understand how to interpret the technical indicators in your technical set up.

Chose simple but power full technical indicators, which have following in built into the technical set up.

A good trading strategy based on a technical set up must have the following as in built ingredients

1.    Technical indicators must be strong enough to weed out the market volatility. Market volatility is one thing, which can defeat best of the managers with best of the strategies if the technical indicators are not strong enough to with stand the volatile changes in the prices, whatever may be the time frame. Two such strong indicators, on which, I have developed my technical set up are RENKO & HAIKIN ASHI.

2.    Besides giving the buy / sell triggers, entry, stop loss and exit levels for trading in the stock market successfully, strategy must have an in built system of controlling your emotions, fear and greed. This means, the technical indicators will guide you through the trade from 1st trigger to the close of the trade.

3.    Will not allow you to take trades in haste based on your emotions

4.    It will provide you the predefined entry levels so that you enter a trade at the right time and best possible low levels

5.    It will provide you the predefined exit levels, so that your emotions will not force you to exit prematurely and thus lose the gains, which were in the trade. It will also not allow you to carry on the trade because of the greed.

6.    It will ensure that your risk spread is wide enough and you control your finance and in particular the gains of the good trades.

These are in short the characteristics of a good strategy based on a sound technical set up.

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