Just wanted to post a quick note here in my watchlist thread about what I look for and what I see on charts. I'm doing this so anyone ever interested in my watchlist's know what I'm looking at and can better understand why my opinion is what it is.
My chart is very simple... My weekly/daily charts are just candles representing price, volume bars, an average volume line, and Moving Averages(10,50,100,200). For anything less than a daily(60,30,15,5,3 min) I use only candles and volume.
Price Action is obviously the King of my chart, but I pay just as much attention to volume... I have really started to pay much more attention to volume and it has paid off very well for me. Moving averages are really helpful to use as potential support/resistance zones. The reason I use 10 SMA rather than 20 is I have found strong uptrending stocks will ride tight and above this line.
I have been trading full time only about 18 months but have been part time for 3-4 years. I started while I was in college and now I trade for my living. During this time, I have found that keeping things as simple as possible is what works best for me. When I have tried to use 1-3 extra indicators on my charts, I spent more time figuring out what they meant and how to use them then I did watching price action. Basically, I use the KISS method, Keep It Simple Stupid. I know I am not the smartest guy in the world so maybe that has something to do with it but really I have found that keeping things very simple usually means more profits in my account.
I hope this helps people who look at my watchlist better understand what I am seeing.
Thanks and God Bless,