Jack Schwager has personally interviewed the greatest traders of our time. He has published several timeless classics, among them my favorite trading book of all time “Market Wizards”. I was thrilled when I heard that Mr. Schwager had developed his own technical indicators, and they were available through TradeShark.com.
TradeShark was generous enough to set me up on their software so I could check it out for myself, and report back to my readers.
The 3 Jack Schwager Indicators are:
Trend Weight (TW): This indicator is intended to capture the major trends in the market. The value of this indicator shows the strength of the trend, and is meant to give the trader entry signals into a trend as it is beginning. This indicator’s purpose is to keep you on the right side of the market, and give you big wins in the right market environment.
Overbought/Oversold (OBOS): This indicator is a counter trend indicator that shows the trader when a trend gets too overextended in one direction. This is intended to show when the risk/reward has become skewed, and it is time to take the profits off the table.
Directional Weight (DW): This combines the trend weight and the overbought/oversold indicators into one sum.
All indicators have a reading range of 100 to -100.
Here are some things I liked about these specific technical indicators:
- The charts stayed clean. It was price action and the indicator measuring it. You can view the indicator at the bottom of the screen or inside the screen. I specifically loved the simple bars on the bottom of the chart that show green, yellow, or red which represent buy, neutral, or sell.
- What I think traders at all levels will find valuable with the Schwager indicators is that they are simple to understand. Unlike other technical indicators, these provide potential buy and sell signals. They are also designed to keep losses small and wins big.
- The indicators were created from historical price data from multiple market environments, and not curve fitted for recent years,
- Price action was measured by direction, trend strength, and overbought/oversold extremes. These are all important aspects to incorporate into a trading system.
- The software is flexible so you can switch to all long signals for stocks in a bull market, or all short selling signals in a bear market.
- You can personalize the chart views based on your preference of color and parameters.
- The signals can be combined for more robust entries and exits.
- The signals are intended to capture the longer term trends for big winning trades, but they can also be used for shorter term traders to trade on the right side of a trend.
- The software makes all markets available for analyzing: futures, forex, and equities.
- These signals were built with the understanding of what made most ‘Market Wizards’ profitable; capturing trends, and the personalization of a trading methodology that fit the trader.
- TradeShark.com is a modern platform that is quick to download and easy to use.
- Mr. Schwager does a great job on the nine basic walk through videos, to get traders up to speed quickly.
The Schwager indicators are great tools for traders at any level to use as part of their process. They are an outstanding place for new traders to start as they learn technical analysis, because of the ease of implementing these three indicators.
Jack has never released indicators in any other software platform and he chose to do so in TradeShark because of it’s company’s history and the high level of accuracy he found for himself by using TradeShark.
They are available exclusively at TradeShark.com.