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THE MARKET WHISPERER 23 5

Which Indicators Should You Use?

Too many cooks spoil the broth, says the proverb. Too many indicators are
not helpful, but harmful! If you try to reach decisions using a number of
indicators, it is probable that I would buy and sell a stock before you’ve
even managed to say “Fibonacci.” While still novices at trading, I suggest
you use the following indicators:
• On the intraday chart in five-minute candles:

1. Volume
2. Moving Averages for 8 or 10 periods
3. VWAP on one chart and Pivot Points on a second chart

• On the daily chart with one-day candles
1. Volume
2. Moving Averages for 20, 50, 200 periods

• On a second daily chart for analyzing stocks:
1. Volume

2. MA of 20, 50, 200 periods
3. MACD or Bollinger or RSI depending on the type of analysis