Hi perfecttip,
Any indicator pattern which is seemingly perfect may not at all be perfect for even the same stock over a different periods of time.. You can test the same for a different period for the same stock and test for yourself..
The same indicator if you post for a different stock for the same time period also WILL NOT be perfect as it looks for now..
So, there is no holy grail out there...
The volatility and unperdictiveness does all this..
Can u post the same indicator for five different stocks in NIFTY for the same period for all to see... to verify the above FACT..
JD
Well, I dont think that I ever claimed that this is a perfect indicator. We all know that nothing like that exists. However, some indicators may be more useful than others. I am posting another image. Check this out.
Technically speaking, we can never know for sure when a stock is going to make a big move, but when it does, we need to capture a big portion of the move. Since a stock's movement is out of our control, cathing a big move early is very important. As we can see from the previous image, the indicator does so ( as per my judgement ). However, like all other indicators, this also gives false signals when it "thinks" that a big move is coming. Often that move does not take place and the signal turns out to be wrong. But the good thing is ( as we can see from this image ) is that it tells us that the move is wrong in an early stage as well, so that the losses are minimum.
Dear members, please share your opinion as to whether you feel the same with this indicator, its faults, benefits and related stuff. And rest assured that I am not trying to hide any secret from anyone. I have posted it here so that we all can benefit. I have intentionally deleted the name of the indicator because we all have a kind of predisposition towards all technical indicators. Lets analyse without knowing who it is. And of sourse I will disclose the name after we understand how well/bad it works.
Regards.