What trading indicators to use on any stock and different time frame effect (Apple $AAPL charts)

What trading indicators to use on any stock and different time frame effect (Apple $AAPL charts)  




Had a question today & I’m often asked about what indicators to use in trading

What indicators are the best for a successful trader?

Why do different time frames give you different signals?

Below is a daily chart on AAPL ( apple ) with candlestick chart, stochastics, RSi & MACD , and 20/50 & 200day sma (simple moving averages) – further down you will see a 5min chart on Apple ( $AAPL)

Don’t use too many indicators , it gets confusing

Also tie your trading to the charts you are looking at : For example understand the general direction a stock is in but if you are a scalper you should rely more on 1min and 5min chars .. and if you are a swing/longer term trader use daily and weekly charts since the intraday moves are far less relevant to you.

When I use to run my business full time and I swing /long term traded I relied more on the daily/weekly charts and the general market directions and key support/resistance levels to determine my entries and exits. Works very well with little stress to worry about an individual big intraday move.

There is no holy grail to indicators since you have earnings, news and volume that can trump any chart or setup (as we’ve seen recently and you’ll see again and again)

double click chart below to see it larger











As you can see you are getting conflicting 5min indicators vs. the cleaner daily chart but if you’re a scalper would help you get in an out at more optimum levels each day.

Here is a 5min chart with the similar indicators :

Double click to make it larger :







Notes from charts:

if i am swing trading AAPL & looking at stochastics as my buy indicator .. its very accurate on Daily chart as you can see below
I prefer stochastics but RSi very similar on both bottoms ( oversold ) & tops (overbought situations)
MACD is a bit delayed unless u front run the cross over
But remember this:
no 1 indicator is 100% accurate all the time also a stock can continue being oversold & overbought

Also different time frames will give u different reads .. so use shorter time frame if u are as scalper & longer term charts if you are swing trader
I look at a 5min & daily chart on all my stocks so I get a general sense of shorter & longer term moves.

And never rely on 1 indicator .. I use a combination of Candles, volumes , moving avg & stochastics since i've had best success in different markets - Just use what u feel comfortable with and what gives you consistency. 
When i first started trading i experimented with many indicators & scaled back till I found what works for me.

5 min AAPL chart
look how many times the stochastics have crossed back and forth even though AAPL has been rangebound for most of the day under $450-$444 area
 if you were an intraday scalper easy to use the overbought situations to short & the overbought (green) to buy bounces for scalps
totally different chart then the longer term daily chart above
but don't rely on one indicator. I use the combination of the ones i mentioned earlier to tell me a story and along with support /resistance helps success rates
Hope that makes sense



Hope  you found this helpful










Posted in Charting & Analysis