As technical analysis depends on indicators to predict the movement of a stock , why a particular indicator fails. a) after some time of use in the market b) for particular stocks ?
Asked by Rashmi Ranjan Behera Last Modified
Follow 32 
Answer 
Siddharth Shetty
Full Time Trader and Stock market enthusiast
Let me clear two assumptions for you now1. All indicators either follow the price or lead-based on momentum but are dependent on the underlying stock. A stock with a clear trend and behaviour will also have signs which will give clear direction.2. Every symbol has an active working percentage which is...
read more Let me clear two assumptions for you now1. All indicators either follow the price or lead-based on momentum but are dependent on the underlying stock. A stock with a clear trend and behaviour will also have signs which will give clear direction.2. Every symbol has an active working percentage which is not stagnant. Like RSI can provide you 70-80% accuracy on a trending market, but if the market is sideways it's skill might go below 40% So after you've understood the above, it's pretty simple. For your question a) it may be because the market dynamics have changed and hence the indicator is less useful for the current scenario.b) the index will always be based on the underlying stock, so if the stock is manipulated or has unclear/choppy trend, the indicator will also give ambiguous results. read less
2
2 Comments
It is no indicator that fails in the market; what goes wrong is our view. Technical Analysis is based on certain assumptions as well as probabilities, not certainties.One should understand the logic (maths) behind the formation of a particular indicator. Some would be leading, and some are lagging. Based...
read more It is no indicator that fails in the market; what goes wrong is our view. Technical Analysis is based on certain assumptions as well as probabilities, not certainties.One should understand the logic (maths) behind the formation of a particular indicator. Some would be leading, and some are lagging. Based on your view and time horizon, you have to use the Indicator. read less
2
Comments
Prakash Gantori
Banking & Finance professional with over 20 years of experience
Depending on the major changes in the fundamentals of a company, the stock will move accordingly irrespective of technical data. I would always advise you to look at multiple factors and hedge your intraday or positional trades rather than taking one side views. In this way, even if your view goes wrong,...
read more Depending on the major changes in the fundamentals of a company, the stock will move accordingly irrespective of technical data. I would always advise you to look at multiple factors and hedge your intraday or positional trades rather than taking one side views. In this way, even if your view goes wrong, your loss will be limited. read less
2
Comments
My personal suggest do not use any indicator, learn support and resistance, channels, trend line.
1
Comments
Technical indicators fail most of the time. They are designed to make your trade often favouring the brokers. Price is the most important technical indicator.
1
Comments
Indicators depend on price and volume, and momentum. When a trend is intact, indicators behave accordingly and provide good signals. But when the price moves too fast, either way up or down and reverses too quickly, indicators take their time to respond. That's it. Indicators don't fail; they just take...
read more Indicators depend on price and volume, and momentum. When a trend is intact, indicators behave accordingly and provide good signals. But when the price moves too fast, either way up or down and reverses too quickly, indicators take their time to respond. That's it. Indicators don't fail; they just take time to adjust to fast reversing or fast-moving prices. read less
1
Comments
Technical Indicators are not a tool used to buy and sell. It acts as an additional confirmation for your method or strategy. Note it's an additional confirmation. The BEST indicator to use is PRICE. Price is the best indicator, and then the Volume.Before any indicator, price gives confirmation. OPTION...
read more Technical Indicators are not a tool used to buy and sell. It acts as an additional confirmation for your method or strategy. Note it's an additional confirmation. The BEST indicator to use is PRICE. Price is the best indicator, and then the Volume.Before any indicator, price gives confirmation. OPTION CHAIN will also give you an indication, better than any indicators. Never Rely on Indicators. If it were so easy to make money in the Stock Market, then 90 % + people wouldn't have lost money. ☺ read less
1
Comments
Technical analysis based on the data points of a stock's price movement with time and volume. Hence the indicator you are using, it's giving the future prediction price based on the previous history of the market. Indicators are tools, so you need to understand the price action of stock with multiple...
read more Technical analysis based on the data points of a stock's price movement with time and volume. Hence the indicator you are using, it's giving the future prediction price based on the previous history of the market. Indicators are tools, so you need to understand the price action of stock with multiple time frames before you insert any indicator. I hope you can find every time the result will vary hence your future price too. You will get a better identification of price momentum. read less
1
Comments
Indrakamal Tiwari
Trainer-NISM Technical analysis Fundamental Analysis
Every system has limitation/ Only trading psychology, and money management can give profit / successful trader known very well
1
Comments
Raja
Equity Options Trader for more than 10 years
There or other factors influencing the Market/Stock prices. Like Geopolitical news, Economic status, liquidity issue. For individual stock, it will react depends upon its problem. So, Indicator is one supporting tool. We, cannot take decisions solely on indicators alone.
1
Comments
View 33 more Answers
Related Questions
Is trading hard to learn? 
It is not hard to learn. Think of trading like a graduation course. It takes lot of time to understand the markets. So as long as you spend the time observing, analyzing and understanding the stock market...
5
Hello! I am looking to learn the fundamentals of stock market analysis and eventually move towards the technicalities of it. I want some suggestions about where to start from. Is there any online courses or certifications which can help me in this?
Hi Gurujeet, for fundamental analysis my preferance is find a CA to learn. For technical analysis you can contact me.
What's the greatest lesson you have learned in stock trading?
Trend is your friend.trade with market trend and second is educate yourself properly before entering in the stock market investing in your self is the greatest asset to generate wealth in stock market
Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRelated Lessons
Trading Lesson by Martin Schwartz
I’ve said it before, and I’m going to say it again, because it cannot be over emphasized:- The most important change in my trading career occurred when I learned to divorce my ego from the...
Gap Myth
JOHN J MURPHY said Several myths exist concerning the interpretation of gaps.One of the maxims often heard is that " GAPS ARE ALWAYS FILLED " .This is simply not true.Some should be filled and others...
Predict Share Market
How to Predict Share Market As traders, we must still place the corresponding orders to enter and exit positions at the right times and in the right directions in order to profit. Simply understanding...
BankNifty Update For Jul-09,2020 - Weekly Expiry
Banknifty opened Gap up @ 22700 and then achieved all our bullish targets of 23900/23000. But the upmove was very choppy and looked like a terminating pattern and was not easy to trade. So I did not take...
N
BankNifty Update for Jun-29, 2020
On Jun-26, Banknifty traded in a range of 21800-21300. The daily chart shows the possibility of the formation of a wedge structure. The bearish divergence on the MACD histogram reinforces this wedge possibility....
N
Find Stock Market Trading Classes near you
Looking for Stock Market Trading Classes?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near you
