I try to keep it as simple as possible. I rarely if ever have a fundamental reason for what I do (i.e. earnings per share are X, or japan is printing lots of yen, or Greece is having riots.) I am one of those crazies that feel people with a lot more information and money than me make big bets using that asymmetry of information. They are more often than not correct. De-cyphering the charts is the key to discovering their intentions and riding their coat tails / staying out of their way.
To do this, I use a few tools:
-First and foremost, I use price action. Patterns and candlesticks are the meat and potatoes of my analysis.
-Specifically hammers/shooting stars off of strong support/resistance are my favorite.
-Neckline breaks of strong head and shoulders are also a favorite.
-Fibonacci retracements of important daily swing points are also used
- 2 different significant fib levels in near same location is a "confluence" zone. Great support/resistance
-MACD price divergence
-MACD only used to measure relative peaks vs price and is not used for trend, OB/OS, or anything else
-Most useful when divergent peak/valley is marked with a hammer/shooting star candlestick
To supplement this, I use Murrey Math (I own his book and Google has limited info, but is a good start).
I use this to form predefined support and resistance, as well as zones of strength and weakness in market.
It is very heavily weighted in WD Gann theory of octaves being used to define the market's zones.
(All of the multi colored, equally spaced lines on all of my charts are based on Murrey Math).
That about sums it all up.
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