Summary: Trading Rules and Reminders

After this module, we go on to discuss specific applications of technical analysis to different markets and financial instruments. Just to pull all the modules together, here is a list to remind you of the different things we’ve discussed so far in the training modules. It’s not comprehensive, but it is extensive and touches most of the bases.

Trading Reminders

• Look at the prevailing trend
• Review the charts on different time scales
• Identify any support and resistance levels
• Look for trend lines or channels
• Check that the volume (and open interest where applicable) confirms the price action
• With a retracement, look for 33%, 50%, 67% and Fibonacci levels
• If there are any gaps, what type are they?
• Are there any major reversal patterns?
• Can you see continuation patterns?
• Figure any price targets from those patterns
• Check what you can find out from the moving averages
• See if any oscillators point to extremes
• Watch for divergence between oscillators and price action
• Look for an Elliott Wave pattern
• Are you in a three wave or a five wave sequence?
• Look for cycles repeating
• See if the candlesticks are telling you anything

If you find a trade is justified, then the following pointers should keep you on the correct path.

At the end of each module there is a quiz. You can take a quiz at any point, but we suggest you view each module before taking the quiz. When you’re ready to start the quiz, click the take quiz ‘Start’ button below -: