Hello readers,

Today I will share you my trading setup which helps me to identify breakouts and trends. Below are the lists of indicators which I follow.

  1. RSI
  2. Moving Average
  3. MACD
  4. Stochastics
  5. On Balance Volume
  6. Volume

I use the default setting for each of these indicators, except for Moving average. For moving average, I use 2 types of indicators mentioned below.

Moving average (period 22, type: exponential, Field: Close)

Moving average (period 20, type: simple, Field: Close)

Brief use of Trading setup

Stochastics & MACD crossovers will help you in identifying potential breakout and overbought regions.

RSI will add more clarity on oversold & overbought regions of stock.

On Balance Volume will give you clarity on the increasing or decreasing volume on the stock.

Volume will show you no. of shares or contracts traded in a day.

Moving Average will show you strength or weakness in the stock. Positional traders also use 52-period moving average setup to identify strong stocks.

In next post, I will share how to use this trading setup for generating profitable trades.

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