What Tools I Use to Trade.

In my first entry I said I would tell you what tools I use to trade and to predict where the markets are going. I am not going to go in to details here on the tools but, as I show my trades I will expand on the indicators I am using.

As I said earlier, I look at a stock because of it fundamentals and then trade the stock based on its technicals. So, from a fundamental standpoint I pay for a stock/leaps screener from compoundstock earnings using the default values given.

Now, what do I use from a technical standpoint. I primarily use Andrews Pitchfork, action/reaction lines and MACD.

If you are not familiar with Andrews Pitchfork go here to learn how to draw the Pitchfork. If you really want understand how Dr. Andrews traded and what he taught people I suggest you take the pitchfork primer course.

Dr. Andrews said that prices will hit the median line 80% of the time before reversing. So, I learned from Dr. Andrews where the price was going but, my problem was until recently was knowing when the price is going to hit the Median Line. Well, I found my answer in a Book By John Crane, Advanced Swing Trading. It falls right in with trading the Pitchfork by using Action/Reaction lines he talks about to predict time. Now I have a target price and a time frame of when I am going to reach that target price.

Now for the MACD. I use the MACD to help confirm what the pitchfork and the action/reaction lines are telling me.

So, where do I go from here. Next, I will make a prediction of the DOW this Friday.