Hey 5-Star Trader,
Adjusting to market conditions is a crucial part of every trader’s journey. While there are no “shortcuts” to make trading easier, there are certain steps you can take to leave yourself in a better position. One of those things is having a toolbelt you can trust. And because I am a self-taught trader, I know the importance of practical indicators, which is why I built a list of tools… most of which are free.
Below is a list of my tools in the order in which I would use them:
1) TrendStrength Candles
The first indicator I consult would be my TrendStrength Candles. I start here because indicative of its name, this tool alerts me of a shift in trend. It does this by consulting Fibonacci number series and moving averages. The color coated signals are easy to read and allows me to act quickly when a setup arrives.
2) The Squeeze
The next indicator I consult before solidifying a setup is the Squeeze. I am a fan of this tool for a variety of different reasons. First off, I like to recommend this tool because its free and readily available to everyone. Additionally, as a directional trader, I need to know if a ticker has a decent shot of moving, in one direction or another. Being able to identify a squeeze on a ticker is absolutely crucial for a momentum based trader like myself, so I never trade without the Squeeze.
3) The VZO
Not only do I need to know about trend shifts and squeeze, but I also need to see which direction it could potentially move. That’s why I combine the Trendstrength Candles and Squeeze with the volume zone oscillator (VZO). Volume is a great indicator as far as how funds and investors are piling into stocks. The VZO can measure how volume moves, and if it’s either oversold and bouncing or experiencing continual adds, this demonstrates positive momentum. Plus, this is another 100% free tool for anyone to use!
Once I’ve run a ticker through all three of my tools and they agree my duediligence is complete and I’m ready to get into my trade!
Interested in a more in-depth explanation of my toolbelt? Check out the replay of my webinar, where I walk through how these tools could be helpful for you.