Since computer trading systems actually guide market price levels, a well known method of tracking stocks and ETFs is to follow support and resistance levels in the market.
Support is a previously traded price level of a stock, ETF, commodity, or entire index that will hold that price level intact - in the past trading history of the security, that stock or ETF was traded and bought enough to hold that price level.
Common swing trading stock strategies try to capitalize on the trend changes between the support and resistance levels of a stock, such as in the SLV ETF chart above. Computers and computer trading software: many people are simply not aware that the new and improved professional computer software algorithms dictate stock price directions and levels.
To find a winning trading method, is to understand that you are tracking computer models and their outcomes.
It has done for generations, and is very likely to keep working well into the future.Technical analysis is a good trading system but not the best as the hard part is that a lot of newer traders simply find this style of trading boring, or not as exciting as an indicator driven system.
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