Does the technical analysis work in day trading
Technical analysis doesn't work
Not only can you read a book and some articles on technical analysis and some indicators and expect you to be an expert and everything will be fine and give you signals that tell you whenever to buy and sell with precision and massive profits .
It's like someone reading a book about how to drive a car and then expecting to drive flawlessly the first time in the driver's seat, or someone reading a book about brain surgery and expecting to have a live one the next day Patient can operate day.
It looks like you are using 3 or 4 indicators to get daily buy and sell signals on a daily chart for an EFT that you want to hold for decades. So, first of all, you use short-term indicators for a long-term outlook. You need to decide what timeframe to hold your investments for and use chart periods and indicators that fit that timeframe.
Second, each indicator can be used in different ways, and the settings you use for each indicator can determine whether you will get earlier or later signals. You also need to find out which indicators work well and complement each other compared to those that don't work well together and give conflicting signals.
All of this information will come together for you the more you read and practice the art of technical analysis.
If your time frame is very long term (decades) I would mainly use a weekly chart with a longer MA period, the ROC indicator and possibly some trend lines. Keep it simple The price itself is also very important. You can use the price to determine when a trend starts or ends. The definition of an uptrend is higher highs and higher lows. So if there is a lower high followed by a lower low on the weekly chart, it could be the end of the uptrend. If we get a lower low followed by a lower high, this could in turn be the end of the uptrend. This could be a good time to get cautious and maybe sell. If you are using stop losses (which I recommend) this might be a good time to start toning up your stops.
Similarly, a downtrend is defined as lower lows and lower highs. If we hit a higher low followed by a higher high, it could mean the end of the downtrend and possibly the start of an uptrend. This could be a good time to prepare to buy.
You need to know how and where to set your buy and sell orders (including stops) and whether to wait for confirmation when you get a signal.
All of this takes time, but the more you read, the more you attend live events, and the more you practice, the more they become second nature. To get the most out of technical analysis, you need to learn, plan, practice, and execute.
A good book to use in preparing your trading plan is Smart Trading Plans by Justine Pollard. One of my favorite books is "The Complete Trading Course - Price Patterns, Strategies, Setups, and Execution Tactics" by Corey Rosenbloom. Another good book is "Trade your Way to Financial Freedom" by Van Tharp.
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