The Technicians Toolbox

The Dow Theory, which laid the foundation for technical analysis, focuses on price. It all started with price. Along the way, trading indicators were developed. They were great tools and helped to clarify price action when used correctly. However, at some point, some traders went overboard and overloaded their charts with dozens of indicators. They obscured price and missed the true value of trading indicators.

In a comeback attempt, a group of price action purists formed. They claim that trading with price alone is the only way to trade. They reject all indicators. They want to trade with “naked charts” and “price action only”. Rather than focusing on either price action or indicators, I advocate an open approach. Price action is a tool. Just like any other trading indicator. With any tool, the best way to learn it is to use it. Judge each tool on its own merits and recognize its drawbacks. In a nutshell, don’t reject any tool because of its label. Wilder’s array of indicators is a notable example of quality trading tools. His trading indicators has survived the test of time: ADX, RSI, Parabolic SAR, ATR. These are excellent indicators to start with.

Contents:

• What is the Best Day Trading Indicator?
• Best Settings For Trading Indicators
• Three Practical Day Trading Indicators
• Trading Candlestick Patterns With Relative Strength Index (RSI)
• Day Trading Forex With CCI Indicator
• MACD Hidden Divergence Trading Strategy
• Moving Momentum Trading Strategy
• Trading The Impulse System by Elder
• 2-Period ADX Trend Trading Strategy
• How I Trade With Only The 2-Period RSI

The Technicians Toolbox By Galen Woods pdf