I had the opportunity yesterday morning to spend a few minutes on the Benzinga Premarket Prep Show answering questions on the markets, stocks and pretty much whatever they asked. At the bottom, you can find an embedded recording of the session if you would like to listen. As we moved through and were talking charts, I told the guys they could throw me any tickers they wanted and I would be happy to comment. I do feel very comfortable doing this because over more than a decade of research, tinkering and a lot of trial and error along the way, I came up with a template I use for my initial review of any security I look at. It doesn’t mean I will be right, but this quick review has become second nature at this point and I feel I can give a decent read on most securities in under 5 seconds using this method (hence the title). Below is an example where I have an intraday snapshot of $TAN to show it.
Now, I am not going to get into the debate on necessary screenspace, but you can probably guess, I like more versus less. This template is built in Esignal which I have used for over a decade now, and all of the charts on the template have both volume and volume at price (VoP) plotted. Let’s take a second and go through each chart in the template and what is plotted on it.
Top left is my moving average chart where you see I have the 5,10, 20, 50, 100, 150, 200 day simple moving averages in the price window and On Balance Volume Indicator (OBV is plotted at the bottom. That particular indicator has been a good tell during this recent surge.
Top middle is the daily momentum chart which is plotted with standard Bollinger Bands in the price window. Below is plotted the standard 12/26/9 using modern formula. Finally is the standard 14 period RSI posted with 9sma and 45ema of RSI posted on the RSI.
Top right is the same configuration as the last window, but in a weekly view.
Bottom left is the same configuration as the last two, but in a 30 minute view with after hours action included.
Bottom right is the 5 min chart with the Accumulation Distribution Indicator plotted in the price window.
This gives me a very quick scan of most of the information I need to make a relevant decision on any security. Sure, sometimes I go look at other charts outside these as I get more serious, one of which is my RSI charts, but for my first glance, this can quickly give me a plethora of important information that I would certainly consider with any security that comes my way.
As I mentioned in the beginning, this has culminated from many years of using various techniques and indicators; and this is what works for me, it may not for you. I like to take in and process a lot of information quickly and even train my eyes and brain on a regular basis for just that task. I believe and have personally experienced getting better use out of both of those muscles from regular exercises at sites like Lumosity.com and a few peripheral vision exercises I learned about around ten years ago. Whatever angle you approach your trading, I encourage you to always seek out things that can help you get better and more efficient with your edge.
Good Luck and I hope this helps!