Ticker tape by TradingView

Take 25% OFF our VIP trade alerts & Trading Community!

Use Code READER for 25% OFF HERE

Building a Technical Bias

Big Idea: Now that we have all this knowledge on technical analysis, we can combine these tools and knowledge to expand our trading and performance. Building a technical bias includes the use of one or more indicators to find ideas and setups and improve the way we trade. Using a technical bias before placing a trade can benefit a trader’s results and even risk management.

CADJPY Example

Here is an example of different indicators used on this chart. The chart consists of EURUSD’s 14-Day RSI, 50 and 200-Day moving averages, trend lines, and support and resistance zones. The low reading on the RSI suggests that price is oversold and could be ready to turn bullish. The moving averages tell us that price is relatively stable because the 50 day MA hasn’t crossed under the 200 day MA, so it might still be bullish. The support and resistance lines show us key levels where price may have to test more than once before a break.

Key Takeaways


-Technical biases usually include the combination of a few to several various tools that give the trader an incentive to go long or short in a market

-Building a technical bias before entering a trade can drastically improve your trading performance and results

Our Latest Analysis

Right to your Inbox

Resources

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram