'How To' : Technical Analysis

Learn the technical skills that I used to make a perfect 'Sniper' trade.

Brace yourself for the easiest techniques used to perform a market technical analysis. All of the techniques I use are incredibly simple to learn and teach. My goal is to help anyone who has some patience and intelligence to be able to read charts in a way that can help guide financial decisions. My future posts will be weekly market analyses for everyone's benefit. I will focus on the major markets that I analyze and the occasional request. If you find my write-ups helpful, give me an upvote!

As this is my first post on Steem, I thought it would be best to explain how and why I use technical analysis to assess markets and make trades. I am not living on income from trading yet, but this is my ultimate goal. I am mostly self-taught when it comes to trading. Over the last 5 years, I have learned my lessons thoroughly by blowing out multiple accounts and making numerous mistakes. I believe the best way to learn the markets is to start putting money on your ideas. Start small, learn, and build your accounts. I've played with forex, commodities, ETFs, leveraged ETFs, options, stocks and continue to learn every day about different markets and how to profit in them. My future posts will provide only my best analyses.

This week, I will show a Technical Analysis of the Gold Market and SP500 showing how each tool can be used on a chart. At the end, I will provide a Confluence Chart that I used to get returns of 30-400% in 6 months.

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Tools and Terms

TA

Technical Analysis: The art of reading charts, independent of Fundamentals, to find signals and determine the short, mid, and long-term trends.

S/R

Support and Resistance lines are based on previous market movements. They are the price points that have proven to be significant turning points and strength points for the markets. They often align with Fibonacci's. The best way to draw them is to zoom out to weekly and monthly candlestick charts over 10-20 year timeframe.

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MA's

'Returning to the Mean' is the way of the market. Moving Averages give the ''mean'' that price will always respect. Prices constantly return to the Moving averages and bounce off them a few times before deciding which way to go next. When exponential moving averages such as a 50 day and 200 day MA cross, this is generally a sign of a major trend change.

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Fibs

Fibonacci Retracement and extension tools show areas that have had or will have significant resistance and become strength points or turning points. Fibs are based on naturally occurring patterns in nature that are reflected in market behavior.

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Candles

Candlesticks give timely signals of market sentiment. Candles with long tails signify traders rejecting lower or higher prices. When this happens at any of the above levels (S/R, Fibs, MAs), the signal is backed by confluence. (The below is from the SP500.)

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Bollingers

Bollinger bands are really a vague sentiment indicator. They are on the outside of the candlesticks. When price touches bollingers, there is a high probability of a short term direction change AKA return to the mean (MAs). This is not always the case, but when it lines up with other signals, it can provide further confluence for market predictions.

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Confluence

When multiple signals all line up at the same time in support of each other. I never trade without multiple indicators in confluence with each other. This image shows almost complete confluence of factors. I made a lot of money on this trade.

Notice in the above the Confluence of Long term monthly support line, Touching the extended Bollinger, Significant deviation from the Moving Average, 50% Fibonacci Retracement from the 2000-2011 Fib. Combine this with the Fundamental Analysis that Gold ''should'' go up based on global conflict, central bank currency manipulations, negative interest rate yields, and a questionable economy, this was one of the most 'Sure' bets one could have made in any market in January 2016. At this time, I put 100% of my free capital and savings into metals stocks, as well as opening a family managed account to do the same. My returns range from 30-400% at this time, 6 months later.

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It is in my best interest to provide the highest quality chart analysis for others. This is not investment advice. Always trade at your own risk, obviously. Each week, I will share what I believe to be the most important factor driving the trends in each of the major Markets: SP500/Dow, Gold/Silver, USD index, and Crude. Though I will never recommend buying or selling something, if you enjoy my writeups, upvote me on steem or tip me with bitcoin 1BgyoS3wsaxMxNPSua6M3VKPDoeF3sZsvE.

-JT
Voluntaryist, Market Analyst, Sports Performance Specialist