Trading For Dummies, 4th Edition
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As you develop and perfect your trading strategy, you need to make use of the analytic tools available to help you. Use the steps in the following list to use technical analysis tools to your benefit:

  1. Determine economic cycle position.

  2. Determine position within sector rotation.

  3. Decide which sectors are ascending.

  4. Determine leading stocks in the ascending sector.

  5. Evaluate the Fed position.

  6. Confirm economic cycle with index charts.

  7. Determine whether leading sectors are range bound or trending.

  8. Determine whether leading stocks are range bound or trending.

  9. Enter the trade only if the stop-loss point is nearby.

  10. Trade within your preferred time frame.

About This Article

This article is from the book:

About the book authors:

Lita Epstein, MBA, is the author of more than 35 books, including Bookkeeping For Dummies and Reading Financial Reports For Dummies. Grayson D. Roze has worked in the financial services industry for StockCharts.com since 2012. He now serves as a business manager at the company. He is the author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery.

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