The Daily Market Forecast... Swiss army knife?

Thursday’s Blog Results: The suggested buy level ran for 24.25 points. Which stop did you choose? The tighter stop lost. The looser stop enjoyed the 24.25-point run. How did you decide which to take? (Re-read yesterday’s blog about market conditions and exit rules.)

Today’s Lesson: Swiss army knife?

Technical indicators are helpful. Yes, most are lagging and we’re always looking for leading information but used skillfully indicators can help build your case for taking a trade or not.

Think about trend. If you’re concerned about trading with the trend then you need a definition of what that looks like and now you’re using historical information.

Where you can run into trouble is combining indicators that are directly related to each other. A moving average and a chart trendline for example. No need for both. Pick one.

You can benefit by combining different types of indicators. Trend, volatility, momentum, volume, sentiment, open interest, and intermarket data are indicators you can combine safely.

While not a true “Swiss army knife” of indicators, Bollinger Bands come closer than any other. They clearly display trend and volatility, two key data points to consider. All major platforms will have this indicator available. Insert it on your charts and see if it doesn’t help you. For more ideas and best practices go to bollingerbands.com.

Today’s Best S&P Futures Turning Points:

Short Level: Sell 4526.75 stop 4631.25.

Long Level: Buy 4454.25 stop 4449.75.

Trade well,

Mike Siewruk

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