Timing Indicators and System
Many investors are uncertain about the difference between a timing indicator,
a trading system, a trading method, and a trading technique. The following definitions will help you understand these terms as they are used in stocks.
Timing Indicators
A timing indicator is also known as a timing signal. Investors use timing signals and indicators as strategies and alerts so they will know when a stock should be bought or sold.
Trading systems
A trading system is so named because it is totally systematic. It contains rules for market entry, market exit, and risk management. If used correctly, trading systems should also yield the same results regardless of the trader.
The Advance/Decline Indicator
It is the theory of accumulation and distribution. The theory is simple, reasonable, logical, and easy to understand. The difficult part is finding methods, indicators, and/or technical trading systems that will allow traders to take advantage of the hypothetical constructs both on a longer-term and day-trade basis.
Chart Techniques
Using charts to analyze markets and price movement is certainly not an exact science but, rather, a working form of art that sometimes depends more on what the eye sees than on a conclusive fact. It is absolutely essential that one should develop at least the basic skills in the art of charting price moves, even if you are more comfortable trading based on fundamentals and facts.