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Wills_&_Trusts_Kit_FOR_DUMmIES‰_by_Aaron_Larson_Attorney_at_Law.pdf3.84 MB
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1️⃣ Alt + T – Trend Line
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✅ Standard Framework for Using Technical Indicators in Trading
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1️⃣ 📌 Identify Market Conditions (Primary)
Before even thinking about indicators:
Is the market trending or ranging?
Use higher timeframes (Daily, 4H) to gauge trend direction.
Is volatility high or low?
Are there major news events or macro factors in play?
🧠 This tells you whether to trend-follow, mean-revert, or simply wait.
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2️⃣ 📉 Define Chart Pattern Bias (Primary)
Next, study raw price action:
Are clear chart patterns forming?
(Triangles, Double Tops/Bottoms, Head & Shoulders, Flags, etc.)
Where are key support/resistance or supply/demand zones?
Are there breakouts, pullbacks, or reversals in play?
📚 This builds your bias — whether to go long, short, or stay flat.
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3️⃣ 📊 Choose the Right Indicator (Secondary)
Only now bring in indicators to confirm or support what you already see on the chart.
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4️⃣ 🧪 Confirm Entry/Exit With Confluence
Check for confluence before entering a trade:
✅ Market Condition
✅ Chart Pattern
✅ Indicator Signal
Only enter if all three align — this dramatically reduces false signals.
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5️⃣ 🧭 Plan Trade Management
Define risk–reward upfront
Apply sound money management
Focus on high-probability setups
