2 Minute Technical Analysis

 

Anybody who becomes interested in trading the markets cannot help but come across this thing called “Technical Analysis”  

There’s tons of literature out there on technical analysis, a quick search in Google can give you days worth of reading.

But today, I’ve made a 2 minute video simply explaining what it is, and how to use it to make yourself money:

What is Technical Analysis:

  • Price Charts essentially showing Price Action + Volume
  • From the Price Action we can find Regular Patterns
  • From Regular Patterns we can develop a trading strategy that gives us an Edge
  • An Edge gives us a higher probability of winning than losing over a period of time
  • Our Edge allows us to take trades time and time again making Consistent Profits

 

So if you didn’t already know what Technical Analysis was, then hopefully you have a better idea now.  I get so many people asking about how I trade and what I’ve explained above tends to be my typical answer.

If you have any questions about Technical Analysis or how I trade then I’d love to hear from you.  You can leave any comments below or email me at jarrod@thetransparenttrader.com

 

Jarrod

 

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Tony Reardon - July 12, 2015

Hi,
I’ve been watching your vids with interest and applying various techniques on a couple of dummy accounts. One thing I wanted to ask was on the video where you used Donchian channels to identify daily points to possibly buy or sell, what was the range of the channels?

Mine defaults to 20 periods but then using the bar charts very very few seemed to qualify as per your technique (ie sell when right marker peg is below lower line on red etc etc). I was wondering if I had the range of the Donchian lines too high.

Any comment much appreciated. ……many thank.
Tony.

Reply
    Jarrod - July 23, 2015

    Hi Tony, which video were you specifically referring to? I use Donchian channels in a few different ways. Simply, the shorter the period, the more trading signals you’ll get. Let me know which video and I’ll give you the exact parameters used. Thanks for your comment.

    Jarrod

    Reply
      Tony - September 3, 2015

      Hello Jarrod

      The specific video in this case was “Stock Market – Simple Method I Use To Trade The Market”.

      Thanks

      Reply
        Jarrod - September 3, 2015

        Hi Tony, the video on my Youtube channel you’re talking about uses 7 day Donchian channels. However the key thing here is that they are not quite the regular channels. That’s probably why they look different on your charts even when you set them to 7 days. Normally, regular Donchian channels use the highs and lows. In this example regular channels would plot the channel on the highest high for the past 7 days and lowest low over the past 7 days. What you see in my video is Donchian channels that use closing prices rather than highs and lows. So the upper channel uses the highest close over the last 7 days and the lowest close over the last 7 days. I hope that clarifies! Please let me know if you’re still not 100% clear.

        Reply
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