RE: stay strong :)1 Jun 2021 15:03
LG, I have used TA for about 30 years: Started day trading with limited success (hardly surprising as a novice and not understanding myself emotionally and how you can get absolutely wrung out with the psychological turmoil that is part and parcel of this game).
Had a break for a couple of years and then when I went back to it, I had surrendered my trading platform and data links and therefore needed to find a system that worked for me and that was out of necessity with the limited tools at my disposal, worked for me.
I find AIM no different to any other market with the proviso, if anything its a little more predictable because there often are more PI's in these small stocks than other funds/large stake holders, and given people are very predictable I find my interpretation of the charts pretty reliable.
I don't buy into MM as some here do. (I am sure it goes on, but only at the margin, MM's can't simply ignore the reality of whatever the buys and sells are taking place over any particular length of time. And they will prey on PI's nerves, (the deadly Tree Shake!) but by and large I think they do a good job in a restricted market making a market to allow buys and sells to go through. (I can't be the only one that notices that when the SP falls its MM, but never when it rises?) That fact alone should remind everyone how emotionally biased they are once they have skin in the game.
There is a wonderful pattern the RSI makes in conjunction with an SP chart that when they fall in line are remarkably reliable. So, that's what I have available to me, that's what I use and so far so good.
Final point, another poster mentioned the 4hr chart (which is fine), but the time interval is critical in developing indicator and chart patterns. I think the time interval should reflect the trading interval. So if you are going to use a 4hr chart then you need to be buying and selling either intraday or at most intra week.
As I am trying out this experiment of holding for potentially weeks/months I am using the Daily Close chart as I am looking at a longer term trade(s) it makes sense (to me) to use a longer interval time chart/indicator.