Q: I have been using candlestick charts for intraday trading on a three-minute time. What confirming indicators should I use wit
Regardless of the entry or exit triggers you may currently be using, it is
always essential to get multiple confirmations from a variety of indicators
before making any kind of trading decision. Ideally these confirmations should
come from non-correlated sources.
For example, if your favorite candlestick pattern is telling you that a
potential buy-entry is forming, you should see whether there some kind of
consensus agreement from other factors. Ask yourself: Is the overall market in
an healthy uptrend? Is the stock within an industry group that is in a strong
uptrend? If the answer is “yes”, then is the stock you’re considering one of the
leaders within that industry group? Is the stock trading above its 200-day
moving average? Is the stock pulling back to a recent low where it might find a
support? Do you have a favorite oscillator such as RSI that is moving in to
oversold territory? Are there any pending announcements that the company might
make in the near future that would work in your favor? The list can go on and
on.