Stock Trading Systems & Technical Analysis
- Dow Jones Industrial Average
DJI Trading
(Investment Research)
A technical analysis indicator is used to determine
the trend of a market, the strength and the direction of the
market for investment of the traders. A
technical analysis indicator may be specific or non-specific.
Some technical analysis indicators can be quantified in the form of an
equation or algorithm. Others show up as patterns (e.g. head and
shoulders, trendlines, support and resistance).
Dow Jones Industrial Average Technical Analysis Rules
A trading system is created by generating signals, setting up a
decision making procedure, and incorporating risk management into the
system. A trading system is supposed to be objective and mechanical. The
analyst combines a set of objective trading rules (usually in a formula(s)
or algorithm(s)).
As a general rule, good technical analysis indicators are the building
blocks of good trading systems. However, as previously mentioned, even
good technical analysis indicators can lose their validity when combined
in a trading system. Therefore, it is important to not only back-test your
system but to also forward-test your system in real time.
Market Timing, Trading Systems
& Technical Analysis Systems for the Dow Jones Industrial Average
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