The Secret Sauce of Trading — My Top Technical Indicators Revealed

Presenting my Dream Team of Technical Indicators

Sofien Kaabar, CFA

--

In the world of trading and investing, having a well-defined strategy is crucial for success. Many traders rely on technical indicators to make informed decisions about buying and selling assets. With numerous technical indicators to choose from, it can be challenging to determine which ones are the most effective for your trading style.

This article aims to simplify the process by presenting a selection of my top technical indicators. These indicators have consistently helped me make better trading decisions and navigate the often turbulent waters of the financial markets. Whether you’re a beginner looking to build a solid foundation or an experienced trader seeking to refine your approach, the indicators discussed here can offer valuable insights and practical applications.

K’s Fibonacci Moving Average

A moving average is a statistical calculation used to analyze data over a specific time period by averaging values within that period. It smooths out fluctuations in the data, making trends and patterns more apparent. There are various types of moving averages, such as the simple moving average (SMA) and exponential moving average (EMA), each with its own way of calculating the average based on historical data points. The Fibonacci moving average (FMA) uses a special combination of moving averages with lookback periods corresponding to the Fibonacci sequence to combine the long-term dependencies with the short-term fluctuations.

Its main aim is to provide a support and a resistance zone depending on its position relative to the current market price.

The following chart shows the FMA as support as it accompanies the market in its bullish phase. The main use of it is to buy the dips.

A real time example of the indicator

Theoretically, the market is expected to hold when it enters the zone from the above.

The following chart shows the FMA as resistance as it accompanies the market in its bearish phase. The…

--

--