UrbanPro

Find the best tutors and institutes for Stock Market Trading

Find Best Stock Market Trading

Please select a Category.

Please select a Locality.

No matching category found.

No matching Locality found.

Outside India?

Search for topics

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 Last Modified  

Financial Planning/Stock Market Trading Tuition/BCom Tuition/Stock and Commodity Markets

Follow 28
Answer

35 Answers

Please enter your answer

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 now
1. 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 Comments

Mentor

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
Comments

Stock Market Trainer

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
Comments

Share Market Trainer past Two Years

My personal suggest do not use any indicator, learn support and resistance, channels, trend line.
Comments

https://youtu.be/fFhBxvv23PE - FREE STOCK MARKET TRAINING PROGRAM - CHECK THE LINK

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
Comments

Certified Equity Research Analyst , Stock Market Technical analyst , Price Action Trader ,Trainer

The indicators are all lagging indicators. They give indication based on what price charts show. Technical analysis is never about catching the exact bottoms and top of a trend. Its about focussing on the entry and exit positions. So it can hapen at times that your indicators show buy but prices reverse....
read more

The indicators are all lagging indicators. They give indication based on what price charts show. Technical analysis is never about catching the exact bottoms and top of a trend. Its about focussing on the entry and exit positions. So it can hapen at times that your indicators show buy but prices reverse. At that time, you have to use your stoploss which is again an essential thing taught in technical analysis. Even the best strategies and indicators dont’t have a 100% success rate. Prudency is in making use of that 70% or 80% hit rate as efficiently as possible. As a side note, technical indicators work relatively better in liquid stocks. So if you apply the technical studies on illiquid securities, they'll fail more often.

read less
Comments

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
Comments

Trader and Trainer Research analyst and Equity derivative certified

Every system has limitation/ Only trading psychology, and money management can give profit / successful trader known very well
Comments

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.
Comments

Learn how to trade professionally in stock Markets.

Indicators are Secondary derivatives of Price and Volume; primary is price & Volume themselves. That is where the beauty of Price action Trading Kicks in. Just by observing Price & Volume we can know when to enter the trade and when to exit the business etc. But to do this, one should have a...
read more

Indicators are Secondary derivatives of Price and Volume; primary is price & Volume themselves. That is where the beauty of Price action Trading Kicks in. Just by observing Price & Volume we can know when to enter the trade and when to exit the business etc. But to do this, one should have a keen ability to understand what happens behind the chart. Price action covers 80% of a good trading strategy if a person is good at analysing them.
Now Coming to Indicators, all Indicators works well when the person knows in and out of the system he is using. Let's Take RSI for example, many times RSI goes into Oversold or Overbought zones when the market is highly trending with significant momentum. An Average trader uses 14-day Default Settings. Still, who knows Price action trading, He knows the market is in good energy, so he adjusts the RSI for 20 or accordingly, it doesn't necessarily mean the market will come down, but the trader is very well aware how price wave functions consequently he takes the trade.

read less
1 Comments

View 33 more Answers

Related Lessons

Is It Possible to Make Big Money on the Indian Stock Market?
First, you need to learn the difference between TRADING and INVESTING (sorry, I won't be explaining it here). Then learn about Indian exchanges where you can invest/trade like NSE, BSE, MCX and various...

Niraj Mittal | 4 days ago

0 0
0

What Is the Definition of Technical Analysis?
The study of financial market behaviour is known as technical analysis. The technician examines price changes that occur on a daily, weekly, or monthly basis, as well as any other period indicated in...

Stock Market Trading Tips
In this video, you'll learn about Stock Market Trading and Investing with examples. It will enlighten you on how and where to invest your money if you are planning to start trading.

Hanamant Kullur | 16 Jun

0 0
0

Looking for Stock Market Trading ?

Find best Stock Market Trading in your locality on UrbanPro.

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for Stock Market Trading Classes?

Find best tutors for Stock Market Trading Classes by posting a requirement.

  • Post a learning requirement
  • Get customized responses
  • Compare and select the best

Looking for Stock Market Trading Classes?

Find best Stock Market Trading Classes in your locality on UrbanPro

Post your learning requirement

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more