Summary/:
1. RSI
2. 200DMA
3. 21 EMA
4. Pivots
5. AVWAP
If you are are not aware of these 4 indicators then YOU are learning TRADING the wrong way !
2nd one is the penultimate of all 🧵
Summary/:
1. RSI
2. 200DMA
3. 21 EMA
4. Pivots
5. AVWAP
1/What is the indicator
2/Uses of indicator
3/Disadvantages of indicator
4/Optimal use of indicator
RSI is mainly used to gauge momentum of a trend.
Anything above RSI 60 is bullish and below 40 is bearish.
RSI should mainly be used to gauge a general trend.
Any RSI that is making constant HH/HL with the price indicates that price is in s bullish territory.
Using RSI you can spot Divergence. This basically means that when Price makes HH and RSI make LL it either suggests a pause in momentum or price reversal.
Bullish Divergence - Price falling but RSI making HH
Bearish Divergence - Price rising but RSI making LL
If price is seen breaking through a key line of resistance, confirmation will occur when RSI moves into overbought territory. The idea is that if market momentum is up, RSI should be up too! The same is true if price is headed down, and breaking support.
1. Fake signals
Usually traders take the Divergence too seriously and hence leading to fake buy and sell signals leading to losses.
Divergence can sometimes indicate that the price will move up but the momentum will diminish and hence the drop in RSI.
Using Divergence Trader short at every divg and price keeps moving up in lagging momentum.
Hence irrational trades leading to loss.
Same happens on downside too.
When the price breaks out and the RSI doesn’t traders are in ambiguity wether price will fall or rise and hence this leads them to not ride the entire trend.
Classic example is AdaniEnt !
1. Use RSI only as a confirmation to breakouts and breakdowns.
2. Use it to add when price retraced back to previous swing.
3. Risky traders use it to catch falling knives using Divergence.
In the end price is supreme !
It is an arithmetic average of the last 200 days closing price. Some prefer open, high or low prices but most widely used is the closing price
1. Trend filter
This moving average is widely used or called as the mother of all averages.
Anything above 200dma with bullish structure is considered as uptrend.
It is the average that is widely used among all traders and investors. And hence the relevance and importance is penultimate.
1. Your can sometimes miss great bullish structures that happen below the 200dma and hence sometimes can get you in ambiguity wether to enter after a huge price surge
It doesn’t matter if the price is below 200dma but if the fundamentals are intact, investor’s usually exit the stock.
A stock can trade below 200dma even after being fundamentally well placed !
A stock can trade above 200 dma even after having bad fundamentals !
This shud only happen when there is a bullish or bearish structure.
The 21-day exponential moving average (EMA) can be thought of as the Goldilocks of moving averages. It is faster than 10ema and slower than 50ema and hence best suited for price trailing.
We usually use 21ema as a trailing average and hence the importance relies only in using it on a close basis.
21ema gives a lot of whipsaws as the DAY data is too less. But it suits perfectly when you trade it using your breakout strategy.
It will also sometimes not let you ride the entire trend because one selling day can ruin your gains and lead an early exit.
Any kind of ema or ma is a data based on price and hence when we use these EMAs it shud be basically used as a confirmation bias and not as a penultimate setup.
Here also price is supreme.
A pivot is a significant price level known in advance which traders view as important and may make trading decisions around that level. As a technical indicator, a pivot price is similar to a resistance or support level.
So any trader who isn’t aware of basic PA to calculate targets can use it as a tool to book gains or trail gains.
This leads to multiple entry and exits hence hampering the average gains.
In market there is no upside limit and hence can be used as a great tool.
If you are are not aware of these 4 indicators then YOU are learning TRADING the wrong way !
— The Chartians (@chartians) August 3, 2022
2nd one is the penultimate of all \U0001f9f5
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And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
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Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
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— r a y a \U0001f319 (@lcvelylilith) February 20, 2020
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