3 Technical Indicators I Look For in Every Chart

by | Feb 23, 2022

If I had to pick one thing that separates me from the 90%+ of traders who fail…

I’d say it’s my ability to predict future price action from analyzing a chart…

I’m what you’d call a “chart junkie.”

It might sound a little funny … But believe me, without technical analysis, I doubt I’d trade as confidently as I do. Nor would I be a seven-figure trader today.

Of course, some people dismiss technical analysis entirely. I’m not here to convince you otherwise or tell you how or what to think.

I just want to take this moment to show you what’s been working for me. And I’ll share some of my best practices, including the thought process behind my trade selection.

I recently took a small $10K account and turned it into $100K in just a few short weeks. Let me show you how charting played a role…

Why I Focus on Technical Analysis

I think of myself as a technical trader. Specific technical indicators in chart patterns give me the conviction to execute my trades.

Sure, there are other factors (like social media sentiment and fundamentals) that can influence my trading…

But for the most part, I look at charts and trust the patterns.

I learned the finer points of technical analysis from my mentor Tim Sykes.

And if you really wanna learn to trade, you should take lessons from a master (like I did)…

The crazy part is … you have that opportunity.

Sykes is hosting an all-day LIVE trading marathon tomorrow, February 24. See how a millionaire trader finds the best setups regardless of market conditions. Click here to sign up now!

When I’m actively trading, like Sykes will be tomorrow, it can be a struggle to find the time to accurately mark up charts. There’s just too much distraction when I have a big trade on.

This is how I take advantage of days when I’m not trading a lot — I mark up the charts on stocks I’m watching.

I find that I often discover the best plays during these focused technical analysis sessions.

The 3 Technical Indicators I Can’t Ignore

Once you have your charts pulled up, what do you do?

Figuring out which indicators to focus on is one of the most difficult parts of technical analysis.

After all, charting can be daunting for newbie traders…

Where do you draw your lines? How do you chart an uptrend (or downtrend)? What determines which price levels are critical?

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Ultimately, you have to figure this out for yourself. I can’t tell you exactly which technical indicators will work for you.

But there are a few standout things I always look at on every chart. If I see them, I immediately mark them up.

And I think getting a basic understanding of these three technical indicators will help get you started.

Indicator #1: Key Levels

  • Draw horizontal lines at key support and resistance levels…
  • These lines provide a visual placeholder of the stock’s current trading range.
  • If the price action breaks above or below the key levels — pay attention!

Example: Look at the key levels I drew on the AMC Entertainment Holdings Inc. (NYSE: AMC) chart back in December. Notice that once the chart broke below the support line, the stock tanked for four days straight

(AMC 1-month daily chart from December — courtesy of StocksToTrade.com)

Indicator #2: Trendlines

  • Draw diagonal trendlines near uptrends and downtrends…
  • These slopes allow you to see the general direction of recent price action.
  • REMEMBER: The trend is your friend!

Example: Earlier this month, when the ProShares Bitcoin Trust (NASDAQ: BITO) broke out of a brutal three-month downtrend, it almost immediately rallied from $23 to $29. Had you been watching that downtrend, you might’ve noticed it break (and seen the potential upside forming). 

Take a look at the chart…

(BITO 6-month daily chart — courtesy of StocksToTrade.com)

Indicator #3: Daily Trading Volume

  • Draw arrows or text near big surges in daily trading volume…
  • Huge volume days often line up with major news catalysts (or a huge shift in market sentiment). This makes high trading volume valuable as both a historical and a technical indicator.

Example: At the beginning of February, Meta Platforms, Inc. (NASDAQ: FB) lost $250 billion in market value — the biggest single-day wipeout in the history of the stock market. Meanwhile, the daily trading volume on FB was 8x higher than average. 

I immediately drew arrows near that volume candle. It was a huge signal that the bearish momentum was overwhelming (and that the stock was likely headed lower). Look what’s happened since…

(FB YTD daily chart — courtesy of StocksToTrade.com)

Final Thoughts

Once I draw in these indicators, it’s easier for me to have a clear perspective about what’s going on in the charts.

Then I use the indicators as directions for timing my trades. For example…

If a stock breaks a multi-day trendline, I’m on high alert. I’ve seen it so many times before. BIG moves often come shortly after a trendline break (like the BITO setup I mentioned)…

Similarly, if the price action in a chart breaks above key resistance — or below crucial support — I’m paying close attention (like the AMC setup we went over)…

All this is to say that knowing your technical indicators is crucial.

Be consistent and diligent with your charting. If you sleep on technical analysis, you risk missing those five-star setups.

Meet Mark:

Mark Croock is a former accountant who after studying under Millionaire Trader Tim Sykes turned his small account into $3.19 Million in trading profits by applying Tim’s strategies to options trading.

He started Evolved Trader to pay it forward and help other traders learn how to leverage options


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