The oft repeated query is how to use the TT(Tech table) for trading purposes. There are improvements made in the TT over a period of time. Before you begin to read the tech table, you need to understand the market moves with the help of two basic classic technical indicators:
Trend indicator (Macd) &
Lead indicator (Stochastics). Once you are able to put the segments of market uptrend with corrections with the use of the above two tools to be followed with market's downmoves with its share of corrective rallies, you will then be ready to integrate the numbers that are appearing in the tech. table to fine tune your trading plans/ executions/ management.
For eg: A buy in a lower time frame while the higher time frame is in BUY MODE would be a valid signal. (If you get a price closing above Day Low Ema while it is staying above Week Low Ema, it is a valid & viable one., exceptions when a market is reversing with +ve divergences). You read your tools starting to give a buy from oversold region, prices would close above the "Low Ema" of that time frame in the TT(depends on the hour/ day/ week TA).
Once the prices close above Low Ema, it is "Buy on Dips" for the short term until prices close above "Close Ema" signalling a "Hold". The prices are then expected to close above "High Ema" indicating momentous moves ahead and you may plan your trades accordingly by adding more for the short term swift gains.
In a sideways market, the prices tend to oscillate between High & Low Emas.
Similarly when the TA tools indicate a overbought with negative divergences, the prices will close below "High Ema" to suggest a "Loss of momentum" signalling a "Sell on Rises" and confirm it with a close below "Close Ema" for a hold and once closes below "Low Ema", the downward momentum will accelerate.
For Positional Traders, the TT has JNSAR and J10.SAR numbers to initiate trades which is a simple
"Stop And Reverse" method.
If you can identify a larger trend change with TA tools, TT will confirm the same with its colour changing as the prices close below HEmas first followed by Day, Week and Month. You are safe as you side with these trend indicating colours. Do not go against them as one never knows how deep is the correction/ Fall or How high is the rally/ Upmove.
Besides these, TT also has Pivot table of three time frames & Fibonacci retracements to choose supports/ resistances for profit booking & re-entry.
If you can understand the rhythmic changes of the market (Using Elliot wave/ Technical Analysis), TT becomes a ready reckoner to choose the trading as well as investment numbers.
Yes, you can use the TT for individual stocks for an effective short term as well as Long term invertment/ trading purposes.
Always have JNSAR Trade,(Positional Trade) & Aggressive trades independently as per their criteria to maximise gains.
