What's Consensus Trading?
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  What Is Consensus Trading
 

Most traders, professional or not, have seldom heard any mention about what is called "consensus trading."

What is consensus trading? Its simple, really. You go with the consensus of several popular technical indicators. When most of them say "buy", you buy. Conversely, when most of them say "sell", you sell (or exit!).

You may choose to stay in the market 100% of the time (swing trading) by entering a trade when the consensus of signals cross the zero point, or you may be selective by entering a trade only when the consensus enters a certain range, such as 70% short, or 80% long, etc. You might also create exit strategies in the same manner. It all depends on your style of trading and risk tolerance.

If you really think about it, consensus trading makes sense. But the question is, why is it seldom discussed or used?

For the most part, it is too difficult and time consuming! For most traders (even professionals), it would be very time consuming to apply all the technical indicators (and there are many of them!) to hundreds of symbols on a daily basis.

COULD YOU IMAGINE APPLYING EVERY TECHNICAL INDICATOR TO THOUSANDS OF SECURITIES FOR A DAY TRADING SYSTEM? NEARLY IMPOSSIBLE!  CERTAINLY DIFFICULT!

This is where fast computers come in handy. But unfortunately, there probably aren't many trading programs that allow this type of analysis. This is where profits are to be made. Wherever technology allows you to have an edge that the person holding the other side of the trade doesn't have, there stands a chance for profit. Especially when decisions must be made quickly and over a wide range of stocks!

By using ConsensusTraders.com, you can use the 
Scanner module to scan thousands of symbols, applying each technical indicator to form a consensus trade recommendation. This output signal may be used to enter and exit trades and/or to evaluate risks.  Our per stock analysis applies all the Technical Indicators on that particular stock to give a Consensus opinion, but Query allows you to filter for your favorite indicators.

Why does it work? Technical indicators work because other traders are using them so it makes sense to take the consensus of indicators and roll them into one, therefore the market can tell you what traders are thinking and not just what one, two, or even three indicators are saying.

Take advantage of the Risk Free Trial and test it out.  You won't find this power anywhere else and we're always adding new indicators to the Consensus.