With so many technical indicators to choose from, it can be tough to choose the ones to use in your stock trading. Consider a top-down approach to help you decide whether to use stock momentum indicators, trend indicators, or consolidating indicators.
Trend direction and volatility are two variables an option trader relies on. Combining trend following, momentum, and trend reversal indicators on the thinkorswim platform may help you determine which direction prices may be moving and with how much momentum.
Understand the difference between trading range-bound stocks versus stocks in a trend.
Understanding the mechanics of the stochastic oscillator may help you identify when a stock is overbought or oversold.
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Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
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Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
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