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  

Follow 32
Answer

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 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 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

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

SHARE MARKET TRAINER WITH 4+ YEAR EXPERIENCE IN THE INDUSTRY

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

Learn to trade with a mentor for consistent profits

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.
Comments

Successful & Profitable Trading with Amitt

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
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

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

Trainer-NISM Technical analysis Fundamental Analysis

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

View 33 more Answers

Related Questions

I want to learn technical analysis for intraday trading. Which book will you recommend for this?
Hi, Shahid! As you want to learn technical analysis for intraday trading, I recommend you top 7 books: Getting Started in Technical Analysis by Jack Schwager Technical Analysis Explained by Martin Pring Technical...
Profile Photo
Shahid
What are some risk-free stock market strategies?
To learn strategy you need to the basics, technical and Fundamental Analysis, chart pattern identification,then you can draw strategy or join my course
Profile Photo
Rakhi
0 0
View Comments6
Are there any free online training course on stock market trading?
There are no FREE online training course, if you get free course you pay costly while trading with your account. Even if you are paying for tips, training in corporate class room environment you do not...
Profile Photo
Ajay

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Brilliant Definition Of A Bank
Brilliant Definition Of A Bank A bank is a broker between the middle class and the rich. The only place where the two meet is in a bank. The middle class brings the money, through saving, and the rich...
Profile Photo

BankNifty Update for Jun-19, 2020
Banknifty moved up today as expected as per the post on Jun-16 (Update for Jun-17). It almost achieved our first swing target of 21100 (Today's top is 21028). The daily chart shows Banknifty took excellent...
N

Ninad Deshmukh

0 0
View Comments0

DOJI
DOJI: Doji is a candle session where the opening and closing price are the same. Traders may get so excited about seeing a Doji they jump on it as a trading signal. But don't make more of the Doji than...
Profile Photo

Mutual Funds
A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides how to invest the money,...
Profile Photo

Is the Bull Market is Going to Continue in Upcoming Days?
Nowadays, most traders and investors in the stock market are very sceptical on a recent robust uptrend. The reason for scepticism is self-evident if economies around the world are sinking due to COVID...
Profile Photo

Kaushal Kishor Singh

0 0
View Comments0

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