iCharts Discussions

[replyab]

does indicators work effectively in event of such 'massive' news such as fed's decision,experts pl guide us

[yesican]

[umesh1]

[yesican]

hi umesh1
yes indicators works...... but we have to co-ordinate indicators with price action, elliot wave or some thing else...... see in down trend u may get a positive divergence in rsi.... most probably it will fail....... and as far a i know all indicators are allmost same........

in larger time frames indicators do works..... ....... ya this is my observation...... may be i dont know how to use indicators, but i think i can read indicators well.......

[umesh1]

I am fully with you on this in larger time frames indicators do works..... ......Had they been so easy Tatas wouldnt had made steel or automobiles .patterns are created to fail first ,so are the indicators in short term markets,one should trade with positional view and watch intraday.positional always reward more handsomely to traders and investors,intraday trading always reward the broking houses more than actual traders
Regards

[smsmss]

indicators can be a part of system, but not the system itself.

as far as trading is concerned intraday or positional is according to one's choice and comfortability. thats it. i say again and again, broker getting rich is not our concern at all, our concern should be our system and our discipline to trade it.

[umesh1]

[amitkbaid1008]

Everything works and works well in markets

Indicators. Patterns, Price Action, Fibonacci, EW, WW, or any thing else any one or every knows.

But a caution here - A stopped watch works and works well because it shows you most correct time twice in a day but you should not miss the chance to see the watch at that time.

[umesh1]

[diamondheart]

[smsmss]

hahahaha

[rocky1980]

Hi

Nice question - Does Indicator works in markets.

Here are some hardcore facts :-

1) Indicators have common interpretations - whole world knows.. and have learnt the same. so people will act normally as we assume. "remember if this would true all will earn money".

2) Indicators only help to track the weakness and strength in market - no indicator gives any buy or sell signal.

3) PA is the only thing which depicts the mass sentiment in any stock-commodity-currency etc.

4) Learn from the charts - "Naked Trading" is what the term is used to describe this. All indicators will tell you what happened and not what will happen.

5) Analyze the charts - they shout at you at times and give you proper momentum shifting indications. Read in between the charts.

6) Try to analyze the Factor which triggered rally or fall in market - Chart is the only place where all sentiments occur prior to the so called news in the TV channels and other media.

7) Back test the chart in co-relation with news flow - before and after. you will learn were did you missed the bus.

My Personal Advice :- Throw away all fancy indicators. learn PA - Historic Charts -Chart Patterns. It takes time - but very fruitful after a cumbersome period. you will master all & Stop watching the media shit.


regards
rocky190

[rk_a2003]

[vinay28]

Here's something I found elsewhere. First a post by a EW analyst

"A lot of people know that R.N. Elliott discovered the Wave Principle. Yet few are aware that Elliott made another observation during his years of studying the stock market.

As the Wave Principle forecasts the different phases or segments of a cycle, the experienced student will find that current news or happenings, or even decrees or acts of government, seem to have but little effect, if any, upon the course of the cycle. It is true that sometimes unexpected news or sudden events, particularly those of a highly emotional nature, may extend or curtail the length of travel between corrections, but the number of waves or underlying rhythmic regularity of the market remains constant [emphasis added].

R.N. Elliott, R.N. Elliott's Masterworks, pp. 158-159

What a stunning insight: Even major news does not alter the market's main wave pattern! This seems to defy logic because most people believe that news and events are the very things that drive the stock market."

Response by an old time broker

"Elliott Wave theory works best in equities that (1) have lots of volume ( liquidity) and (2) move according to key forces of fear and greed on the part of many participants. When a security is not prone to this crowd behavior and is controlled instead by a few strong hands, Elliott patterns begin to break down."

My response

"....controlled instead by a few strong hands...." Very true and that's why it's not merely the fundamentals but their psychological interpretation by the market makers (which are anyway a few giants) which drives prices.

[chennuru]

Dear all
thanks for ur valuable comments,
my personal opinion-----
in stock market fundamental were working fine around ten years back,
but now fundamentals doesnt work,
because
who doesnt know that -itc good stock, infosis good, hul good,
but most people doesnt know, when price go up,
and come down,
just stocks goes up or down by supply and demand priniciple,
u have to see stock market in this way,
u may follow charts or indicators.
most of the indicators, directly or indirectly indicates above priniciple.