Introduction
My Journey in Technical Analysis started a long time back.
As with all beginners it started with the search of a Holy Grail.
Then entered into the world of a thousands of indicators to find each indicator failing at one point of time or the other.
The search for the best indicator is a never ending quench. And we move on in search for better and better but loose much time and energy which results in failure of our trading systems ultimately bringing our energy levels and confidence to ground zero levels.
To be a good TA focus on a couple of indicators which works for your markets. Analyse and build your studies on these selective indicators.
Learn how the basics of how the indicators have been formulated. Many simple indicators have many things to tell you at various levels.
Some of the simplest indicators like MACD, Stochastics ,ADX are most commonly used but least understood and put into use in a proper way by most common investors.
Concluding that, build on the indicators that prove reliable to you and your markets. The simple reason being markets have only 6 parameters on which any indicators can be designed .i.e. OPEN, HIGH, LOW, CLOSE, VOLUME AND OPEN INTEREST.
There is no 7th parameter to build a indicator, and so all indicators in some way or other guide you, some with more intensity, some with less intensity.
Once a indicator of once own choice is selected then analyse which category if indicators it belongs to. There are many categories of indicators - Trend Indicators, Oscillators, Open Ended Volume Indicators, Closed Ended Volume Indicators etc.
Never use all indicators from the same category of indicators.
There is no magic in stock markets or technical analysis either.
Technical Analysis is a study of a direction in which the stock would or would not move in a given short period of time. This short period may be a week or greater.
Remember no indicators and no candle on today's chart will tell you about immediate next days move.
Every candle of every stock everyday is not a trading candle. Markets take a pause after a up move or a down fall , which a trader has to respect and trade accordingly.
Entries and Exits play an important role here. A stock never goes up vertically neither falls down vertically.
Respect Markets and Trends and the Markets shall Respect You.
As with all beginners it started with the search of a Holy Grail.
Then entered into the world of a thousands of indicators to find each indicator failing at one point of time or the other.
The search for the best indicator is a never ending quench. And we move on in search for better and better but loose much time and energy which results in failure of our trading systems ultimately bringing our energy levels and confidence to ground zero levels.
To be a good TA focus on a couple of indicators which works for your markets. Analyse and build your studies on these selective indicators.
Learn how the basics of how the indicators have been formulated. Many simple indicators have many things to tell you at various levels.
Some of the simplest indicators like MACD, Stochastics ,ADX are most commonly used but least understood and put into use in a proper way by most common investors.
Concluding that, build on the indicators that prove reliable to you and your markets. The simple reason being markets have only 6 parameters on which any indicators can be designed .i.e. OPEN, HIGH, LOW, CLOSE, VOLUME AND OPEN INTEREST.
There is no 7th parameter to build a indicator, and so all indicators in some way or other guide you, some with more intensity, some with less intensity.
Once a indicator of once own choice is selected then analyse which category if indicators it belongs to. There are many categories of indicators - Trend Indicators, Oscillators, Open Ended Volume Indicators, Closed Ended Volume Indicators etc.
Never use all indicators from the same category of indicators.
There is no magic in stock markets or technical analysis either.
Technical Analysis is a study of a direction in which the stock would or would not move in a given short period of time. This short period may be a week or greater.
Remember no indicators and no candle on today's chart will tell you about immediate next days move.
Every candle of every stock everyday is not a trading candle. Markets take a pause after a up move or a down fall , which a trader has to respect and trade accordingly.
Entries and Exits play an important role here. A stock never goes up vertically neither falls down vertically.
Respect Markets and Trends and the Markets shall Respect You.
