This has been a quick overview of some of the most common technical indicators, and some basic ways to use them. It will take more practice and study before you'll likely want to use them with real money on the line. Here are some suggestions on where to go from here:
- Practice these techniques using your Tech/Charts, Chart-II, Chart Pro and/or Intraday Pro segments. You'll quickly see how they could have alerted you to some major market turns that you may have missed.
- Experiment with different length settings for the RSI, Stochastics, etc. to find out which ones are most "in tune" for the markets you are interested in using for hedging or trading purposes.
- Check out the books in the recommended reading list.
- This school will be repeated later in the year. Go through it again without the audio, and test yourself on how much you remember about the tools and the analysis.
- Subscribe to Chart School II the next time it's offered, to learn about other technical indicators, and to receive another viewpoint on interpreting the indicators shown here.
Recommended Reading ListListed below are some books recommended by Data Transmission Network's Director of Analysis and Product Research, Alan Brugler. Prices or availability are not guaranteed, and some may not be appropriate for all readers.
From Traders Library (1-800-272-2855): Techniques of a Professional Commodity Chart Trader - Arthur Sklarew, 181 pgs., $32.95
Technical Analysis of the Futures Markets - John Murphy, 556 pgs., $49.95
From Consensus Bookshelf (1-800-383-1441): New Concepts in Technical Trading Systems - J.Welles Wilder, 142 pgs., $65.00 (RSI, ADX, Parabolics Inventor)
Using Stochastics, Cycles and RSI -George C. Lane, 47 pgs. $40.00 (Stochastics Inventor)
The Power of Oscillator/Cycle Combinations -Walt Bressert, $145 (Direct Order From Author 800-331-1250.)