Technical + Trader = TechniTrader
Learn what it takes to become an expert techni-trader! It all starts with technical analysis. Martha Stokes CMT breaks down the essentials of our 3-dimensional tehnical analysis techniques that help you achieve higher trading profits. You will learn:
Orient yourself: Price Trends, Timeframes and Trendline Patterns.
New tops and bottoms for identifying critical turning points in the price movement of stocks, options, ETFs, e-minis, cryptocurrencies and more.
The role of support & resistance in managing risk vs. reward for your style of trading.
The role of Relational Technical Analysis for achieving more consistent trading results.
Additional Topics covered in this Training:
Dark Pool buy zones, professional traders, hedge funds, risk analysis, market corrections, stocks, market indexes, leading hybrid indicators, candlestick patterns, swing trading, platform position trading, short-term trading strategies, how to improve trading results, long-term investing.
This is NOT a complete course on trading stocks or any other trading instrument. The Methodology Essentials Course is the comprehensive course that gives you everything you need to achieve consistent success.
THIS IS ONE THE THINGS WE DO BEST
TechniTrader – Technical Analysis Training
There are many different Technical Analysis Theories and Methodologies that have been developed over the years. The first concept was developed using a simple line chart of the end-of-day price with a smoothing mechanism, the simple moving average. At the time, moving averages were first used by technical analysts for studying price action on stocks and/or indexes.
The goal was very simple: to determine if the long term trend was still intact. When the price line dropped below the moving average, the analyst was able to determine that the trend was no longer intact and that a shift from upside trending to downside trending had occurred.
The problem with this very simple approach was that the moving average requires price to be present on the chart before it can create the corresponding moving average. This meant that the moving average lagged behind the stock price trend action, often by many weeks or months and with a huge loss of the profitability prior to the downturn and moving average trend shift.
Despite many different variations of moving averages that attempted to eliminate this lengthy lag time, moving averages, by their inherent formula and nature, continue to lag price. In the modern automated marketplace, and especially in countries such as the US, Canada, and Europe, moving averages lag substantially due to the computer generated order processing systems and the more complex Market Participant Groups.
Since the early days of moving averages and line charts, technical analysis has continually evolved and many theories have been written and designed. Some are excellent. Others were promoted without empirical evidence and substantive proven results.
Therefore, a student of technical analysis must not only be sure that they are studying the most current technical analysis concepts and theories but must also make sure that a theory has empirical evidence to support any claims made by the technical theorist.
Most retail traders start out learning about technical analysis either through books published on the subject or by visiting one of the many websites on the internet that feature a technical analysis theory or information about technical analysis in general. Some websites are outstanding with excellent technical theories; others are outdated, lack theory probabilities, and poor technical analytics.
Students of technical analysis must do due diligence and be careful to avoid theories that claim predictive capabilities, forecasting capabilities, use non-scientific concepts such as astrology, or other unreliable theoretical concepts.
Not every book written and not every theory promoted for technical analysis is reliable or proven. The problem with predictions is that no one can predict the future, especially long term predictions.
Scientists who study earthquakes, volcanos, and tsunamis are still unable to predict precisely when these catastrophic events are about to occur. No scientist can accurately predict how climate change will affect the earth and what will happen in the future. Even local weather forecasts are less reliable than most people realize. Therefore, attempting to predict the future stock or index movement based on technical analysis theory, by itself, is not reliable. As an example, many people still believe that the stock market or the economy has a 4-year cycle of trending up to trending down.
This theory has been proven to be wrong. The theory is flawed due to the fact that it is based on expansions and recessions of the US economy over a period of over 100 years. Within that data, some expansions lasted less than 2 years, while others lasted more than 8 years. Averaging such inconsistent data resulted in an inaccurate assumption that there was a 4-year stock market cycle. This leads to many people losing money trading or investing in stocks.
When using technical analysis, the approach must always be first, to use current technical analysis patterns and concepts, secondly, to avoid outdated and unproven, obsolete, or unsubstantiated theories. Thirdly, technical analysis is designed for studying near term, intermediate term, and/or long term patterns. Using the proper time frame for the goals of the investor or trader is crucial.
Technical Analysis must also incorporate as much of the New Fundamental data as possible to provide a complete analysis of price action. Since over 80% of the market activity is institutional in the US, learning the new technical analysis that can track the larger fund activity helps retail investors, retail traders, small fund managers, and professionals make better buying and selling decisions.
