Does our market really follow Technicality?

Anillal

Active Member
#21
Dear Friends,

We all been doing technical analysis from long time and doing pretty well. I, as a learner am also trying to learn as much as i can so that 1 fine day i can be a successful trader using my technical analysis.

Now friends, a million rupee question is: "Does our market really follow Technicality". We have seen our market behaves very abnormally. It suddenly shoots up to Heaven and then equally falls to the Abis. I have a known person who works in NSE and he told be boldly: "Technical analysis is good for learning, but our Market runs on Rumors, human relations/internal jhools, tips, etc".

So my friends, as a beginner, i am really not able to make up my mind whether i shall really dig deeper into technical analysis, though its my passion to learn technical analysis. So friends based on ur experience trading with technical analysis, kindly suggest me will learning TA really help me in making my passion as my future living. :thumb:
Ask yourself this. Does sun go around the earth or earth goes around sun? If you look up in the sky then sun is going around. If you know the truth you would take the sun's movement as an illusion. So my dear sir that gentleman from NSE told you the truth. :)
Once you become an old hand in trading you would know that TA does nil job in moving the markets. Charts simply reflect the past and present price action going through resistances and supports but it has no bearing on future price action no matter what people say, therefore backtesting is waste of time and TA based forecasts seem sureshot due to all that technical jargon but in reality with all the maybe-maybenots are hardly better than the horoscope in the newspaper...that is, it makes sense only to the believer. :) However one must be very good at TA if one is thinking to take up trading as a profession. Because a professional trader uses TA as a tool to figure out the market trend by following highs and lows or patterns or indicators etc and bets when he sees positive expectancy in his favour. TA helps immensely in taking out emotions out of trading which is very very important.
 

suri112000

Well-Known Member
#22
Re: Share Market, nifty , nifty option, stock, profit, mathod ?

Do you cover for losses ? can you deposit 50K in advance with me to cover any losses you can cause with your tips ?
EXCELLENT:clap:
 
#23
Btw, TA sometimes may point out the upcoming gapup or gapdown ;)
My guess is that you are thinking that prices are always traded at each and every tick - which is not necessarily true. Even during daytime a stock whose ltp is 100 does not necessarily has to trade at 100.05 and 99.95, the next trade price could well by 150 or 50. Trading prices are not supposed to be stairs, but think of them as stairs and lifts (both normal and hydraulic).
A very simple example -
Today kingfisher has closed at 12/- , Imagine tonight VM says that its enough for him and he is not going to operate the airlines from tomorrow. At what price would you like to buy tomorrow when market opens ? 11.95 ?
Well said. :thumb:
 
#24
Ask yourself this. Does sun go around the earth or earth goes around sun? If you look up in the sky then sun is going around. If you know the truth you would take the sun's movement as an illusion. So my dear sir that gentleman from NSE told you the truth. :)
Once you become an old hand in trading you would know that TA does nil job in moving the markets. Charts simply reflect the past and present price action going through resistances and supports but it has no bearing on future price action no matter what people say, therefore backtesting is waste of time and TA based forecasts seem sureshot due to all that technical jargon but in reality with all the maybe-maybenots are hardly better than the horoscope in the newspaper...that is, it makes sense only to the believer. :) However one must be very good at TA if one is thinking to take up trading as a profession. Because a professional trader uses TA as a tool to figure out the market trend by following highs and lows or patterns or indicators etc and bets when he sees positive expectancy in his favour. TA helps immensely in taking out emotions out of trading which is very very important.
Well said.:thumb:
 
#25
Dear Friend,

I think i have made this topic a little bit confusing. Let me re-frame my topic correctly:

Are Technical Analysis really able to catch the market momentum and gives us signals whether to enter/exit the trade.? :)
 

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