Key points to be noted in Technical Analysis

mmuralifolio · #1 10th November 2006, 02:50 PM

Hi Senior Members,
What are the technical indicators to be consider while analysing a stock?
Please Share your views

Rgds
Murali

CreditViolet · #2 11th November 2006, 12:17 AM

Quote:

Originally Posted by mmuralifolio

Hi Senior Members,
What are the technical indicators to be consider while analysing a stock?
Please Share your views

Rgds
Murali

Price

CV

t_aravindkumar · #3 11th November 2006, 01:08 AM

i am also interested in this

i had TA software but i do'nt know how to use it

Linus · #4 11th November 2006, 08:02 AM

CV,

You said it in one word !!

Fibo.

lohiya · #5 11th November 2006, 10:27 AM

Well, I consider volumes also

shamim · #6 11th November 2006, 10:45 AM

I would say that in TA more is not better. A few moving averages and one indicator ( choose one and learn it thoroughly- my favorite is CCI) is all you really need. There are some very successful traders who skip the indicators altogether and just make do with MA.

ash.investor · #7 13th November 2006, 12:31 AM

It really depends on you which TA indicators you like to look at and feel more reliable. Not only the indicators matter, but also their input parameters do matter, like MACD(5, 10, 5) looks very different from MACD (31, 50, 5). So there is no hard and fast rule to follow a particular indicator and its settings.

Its your money you want to trade and you have full freedom to choose whatever indicators you feel works for you. If you analyse the historic data you will find that some indicators may very be useful and leading as compared to other indicators in determining the future price and early buy sell signals. But then after a while some other indicator may also take the charge.

My suggestion is don't just follow one indicator and trade. Follow a trading system that combines 2 or 3 indicators will be good. The system should be as such that the first indicator (leading indicator) gives you an early indication, while remaining indicators give you the confirmation (leading indicator) making it less possibility of losses. One important thing while choosing 2 or more indicators is that it should not lead to multi-collinearity which means that 2 indicators giving the same signals in same time. eg: combination of RSI and CCI. These indicators show the same kind of chart narrowing our horizon. So choose any one of them and look for any other indicator.

Also include a volume indicator. Volume is independent of price and hence can gives a better dimension.

Do not include too many indicators in your system which really makes very difficult to make decisions.

Regards,
a$h.investor

karthikmarar · #8 13th November 2006, 02:25 AM

Great a$h .... you have given a proper answer when others has have left the poor chap totally confounded..

mmuralifolio · #9 13th November 2006, 08:07 AM

Quote:

Originally Posted by ash.investor

It really depends on you which TA indicators you like to look at and feel more reliable. Not only the indicators matter, but also their input parameters do matter, like MACD(5, 10, 5) looks very different from MACD (31, 50, 5). So there is no hard and fast rule to follow a particular indicator and its settings.

Its your money you want to trade and you have full freedom to choose whatever indicators you feel works for you. If you analyse the historic data you will find that some indicators may very be useful and leading as compared to other indicators in determining the future price and early buy sell signals. But then after a while some other indicator may also take the charge.

My suggestion is don't just follow one indicator and trade. Follow a trading system that combines 2 or 3 indicators will be good. The system should be as such that the first indicator (leading indicator) gives you an early indication, while remaining indicators give you the confirmation (leading indicator) making it less possibility of losses. One important thing while choosing 2 or more indicators is that it should not lead to multi-collinearity which means that 2 indicators giving the same signals in same time. eg: combination of RSI and CCI. These indicators show the same kind of chart narrowing our horizon. So choose any one of them and look for any other indicator.

Also include a volume indicator. Volume is independent of price and hence can gives a better dimension.

Do not include too many indicators in your system which really makes very difficult to make decisions.

Regards,
a$h.investor

Hi a$h,
Thanks a lot for your valuable information

Rgds
Murali

ash.investor · #10 13th November 2006, 02:11 PM

Thanks Karthik,
If the info I provided helps someone, then I feel very good.

I truely believe in-
"If I have an apple and you have an apple and if we both exchange our apples, then we both have an apple each. But, If I have an idea and you have an idea, and if we both share our ideas, then we have 2 ideas each."

Regards,
a$h.investor

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