First of all. I reccomend that you start simple. Remember “the trend is your friend until the end.” Trendfollowing is such a simple strategy, so learn to live with the trend.
Trendfollowing, may be even easier if you use japanese candle stick charts that have been used for centuries in Japan. Search for books by Steve Nison on amazon with the keyword Japanese Candlestick … Steve Nison is an authority on candle stick analysis.
I have written a short document in Norwegian. Here it is
As you will note I use Japanes Candlesticks in that document. Probably the most complete resource for identifying and utilizing candlestick patterns is Thomas Bulkowski’s pattern site.
Here are some indictors that I will use.
Bulls live above the 200 day moving average, and bears below. The (negative or positive) trend is your friend until the end. Hvor kommer kursen fra og hvor skal den.
Note that the Relative Strenght Indicator (RSI) must not be confused with relative strenght as for instance Relativ Strenght of a stock or a sector. For a good example of how Peter Lynch uses P/E for a stock versus the P / E for S & P 500, see his book “Beating the street” (1993), especially figure 3-1. If you divide the price of a stock by the price of an index, you get one well known measure of relative strenght. See also Price Headleys (2002) book “Big trends in trading” Chapter 9.
“Keep in mind the fact that no technical indicator is perfect. None of them gives signals that are 100% accurate all the time.
The smartest traders are always watching for warning signs that signals from their chosen indicators may be misleading. Technical analysis, done well, can certainly improve your profitability as a trader.“