[BHart]

Hello

I have spent most of my working life doing the odd bit of investing. This has mostly been in US and UK indices with some attempts (mostly unsuccessful) to make money dealing in digital assets like Ether. Now I am in a position to focus more of my time to it, and I want to trade shorter time spans.

The challenge I have is that I’ve mainly centred on fundamentals and lots of what I’ve been reading online says charts and technical analysis is more important for day trading.

I’m hoping some active traders on DayTrading.com can share some top quality resources that will help me learn how to do technical analysis effectively.

I’ve tried a few different places so far (SMB Capital on YouTube). I’ve also ordered a book called The Handbook of Technical Analysis + Test Bank: The Practitioner’s Comprehensive Guide to Technical Analysis but I’m expecting it to be quite dry so some lighter, more engaging resources would be great.

Regards

BH

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[BE29]

The best way to learn technical analysis is to fire up a demo account and practice day trading on charts.

Start by setting your chart to a 1-minute, 5-minute, or 15-minute timeframe. Then use simple candlesticks to visualize any price action.

Begin with one or two indicators, such as moving averages (a combination of short-term like a 9-period, and long-term like a 50-period to help identify trends) and the relative strength index (to spot overbought and oversold levels).

Volume indicators are also helpful for confirming price movements, while Bollinger Bands can assist in identifying volatility and potential reversals.

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[BHart]

Yeah man I have a demo trading account that I’m using as well don’t worry.

I appreciate your suggestions on chart types, timeframes and indicators.

BH

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[BE29]

You are welcome and fire any more questions you have on here if you get stuck.

I know from my own experience getting lost in trading charts over the years that it can be a tricky puzzle to crack.

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[Intraday Insider]

I like the series from Charles Schwab which is free on YouTube. Here you go – https://www.youtube.com/playlist?list=PLf5N6dqfQaNQbOG0mw5YCZ0ql3AbBvREn

I’ve watched them all and found them a nice introduction to the basics if you want them in bite sized format. They’re particularly good if you plan to deal in stocks, as they mainly concentrate on that asset class.

You won’t get much more than the essentials though so I’d use it alongside other resources.

 

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[BE29]

Some of these looks fine but they are very high level. A few of them seem to be more about the thinkorswim platform as well. The one on Bollinger Bands is a well done introduction.

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[Intraday Insider]

As I said in my OP, they are a “nice introduction” and “bite sized”.

I’m with you on the thinkorswim platform sell but every course, video and the like out there these days seems to be selling something.

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[BHart]

I just finished this video series. Some great introductions to key topics like you mentioned and I especially liked the one on pitfalls to avoid in technical analysis.

I’m going to try and get through all the resources shared on this post. Knowledge is power and all that!

BH

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[BiggieTrades]

Udemy’s technical analysis courses are decent if you are brand new and don’t want to break the bank.

I would look at the ones under ‘Beginner Favourites’ and choose one with a high rating of over 4.5/5.

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[BE29]

I wouldn’t be paying for courses when there is so much free stuff online….a massive waste of money IMHO.

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[James Barra]

Hi BHart,

Have you checked out DayTrading.com’s guide to technical analysis for beginners?

It breaks down all the basics and unpicks popular charts, indicators and other tools.

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[BHart]

Hello

I have read it now so thank you for sharing. The breakdown of all the indicators looks particularly helpful – I’ve got the page on moving averages open alongside my demo trading account right now.

BH

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[James Barra]

Glad to hear it.

You know where we are if you have any specific questions on charts, indicators, and drawing tools etc. Just put them on here or create a new post.

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[Christian Harris]

I always recommend Babypips as an excellent place to start.

Although it’s aimed at forex trading, the principles of technical analysis can be applied to all assets, including stocks and indices.

Check out this excellent free course that can be completed in your own time – https://www.babypips.com/learn/forex

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[Intraday Insider]

I like Babypips too, especially for forex trading. They are good at keeping things easy to understand when you are brand new to a trading topic.

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[CoconutScalper]

Fidelity have an excellent PDF on identifying chart patterns with technical analysis. This is the link: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/learning-center/Idenitfying-Chart-Patterns.pdf

It is from a webinar series they did on technical analysis where they also covered getting started with TA, indicators for TA and managing risk in TA. I do not know if the vids can still be viewed but a worthwhile watch if you can find them.

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[Christian Harris]

My 2 cents on TA. 99% of it is useless.

Institutions (big money) don’t trade based on TA. Analysts use TA to create reports to generate liquidity in the market, but that’s another story…

I can save you years of trading stress by suggesting you consider the following: concentrate only on supply and demand (resistance and support).

Mark your charts with major S&R levels and buy and sell at those levels. Consider these levels as purchasing an asset for cheap (support) or expensive (resistance).

Sit on your hands while the price fluctuates between those levels. Attempting to trade all the ‘noise’ is why most day traders fail.

NOTE: Hedging should be considered for advanced risk management.

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[Seb_2798]

I don’t fully agree that institutions never use technical analysis. Some use it alongside fundamental analysis to build trading systems. I think the distinction is that they typically have much more comprehensive data (order flow, market depth, sentiment etc) so they can paint a more complete picture than technical analysis alone.

I’m with you about focusing on price action, support and resistance and trying to block out market noise.

Basically, I think technical indicators CAN be useful in some contexts, but I wouldn’t base my trading strategy on it.

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[Christian Harris]

I agree with your comments Seb_2798.

I was trying to say that retail traders shouldn’t obsess with TA because it’s not a panacea to successful trading.

Price will move where institutions (considerable money) want it to, regardless of chart patterns, indicators, etc…

All we retail traders can do is try and enter a trade with the best odds of winning, and I believe that trading at significant price levels is the ‘safest’ way with the highest chance of success.

Each to their own, of course. Good luck.

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[Seb_2798]

Yeah that’s where the real battles happen. It’s all about improving the odds, like you said. And yeah, no strategy is foolproof, it’s about finding what works best for you.

Good luck to you too, and happy trading!

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[BHart]

Hello,

Coming back to this, what would you all say is the best platform/software for technical analysis in the market today?

Or phrased another way – what charting platforms do you all use?

 

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[Christian Harris]

TradingView

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[BHart]

And which plan do you think I need at my level? Should the Essential plan suffice?

https://www.tradingview.com/pricing/#plans

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[Christian Harris]

You don’t need to purchase any plan.

Try out the free version and see how you get on. I’ve used TradingView for years and have never needed to upgrade.

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[BHart]

Even better!

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[BE29]

I use a couple but ctrader is my all in favourite.

I’ll also be honest with you: Trading platforms have come along way over the years, and as a beginner, virtually every platform your brokerage has will have more technical analysis tools than you could possible need and use.

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[BHart]

Cheers but I have tried cTrader already and to me it looks like the trading platform equivalent of dial up internet. Yeah it works, but not without reminding you of how much tech has evolved since!

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[Christian Harris]

If you’re serious about TA, you might also want to check out:

• Society of Technical Analysts (STA) – https://www.technicalanalysts.com/
• Chartered Market Technician (CMT) – https://cmtassociation.org/chartered-market-technician/

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[BHart]

These look like more professional/structured learning paths, interesting. Have you completed either? Did you find they significantly improved your understanding of TA?

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[Christian Harris]

No, I haven’t registered with either of them.

STA appeals more to me, however, as it’s based in the UK and the cost is reasonable. Plus, you can work towards a diploma.

As you said, they both offer a professional, structured approach to learning TA, which I support compared to most of the nonsense on YouTube.

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[BHart]

I’ll see how I get on with the more casual learning programs to start with as these look like larger investments in terms of time and money. But I suspect you’re right that if I want to make serious gains in my TA skills I could need something more comprehensive like this.

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[Time2Trade]

I am interested to know which of these resources turned out to be the best? @BHart which did you find the most useful? I too want to do some more reading up on TA.

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[BHart]

As a starting point, I found these vids the easiest to follow: https://www.youtube.com/watch?v=VoI9fzjNWDU&list=PLf5N6dqfQaNQbOG0mw5YCZ0ql3AbBvREn&index=7

They helped me find and focus on a couple of key TIs like BBs and RSI.

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[Time2Trade]

Okay man, cheers for that. I’ve watched the first couple of videos about technical analysis basics and reading charts. I’ll probably jump straight to the most relevant ones now because it looks like there are a few not worth bothering with e.g. I don’t plan to use thinkorswim and a few of the videos look very much about stocks…though possibly all the same principles apply…hmmmm

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[BHart]

You do you my friend. From what I’ve read and learnt so far there is a lot of crossover in terms of technical analysis principles, whether you apply it to stocks or FX.

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[Christian Harris]

I agree BHart.

Technical analysis is generally applicable across various asset classes.

The primary difference between trading FX and stocks often lies in fundamental analysis.

FX pairs can be highly volatile around major economic events, such as interest rate or inflation announcements.

In contrast, stocks typically experience significant price movements due to company-specific news, like earnings reports or major announcements.

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