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Can indicator are helps to exact entry and exit in stock ?

Saturday, November 20, 2010 | Labels: | |


In last octave of years I had started from root in market. I was not belongs to financial sector in initial market days. Later I feel necessity of formal eduction in finance (as days passes, I feel that I am wrong about. Still I am happy. This is only reason,I am near to purse master degree in finance)

I had started from "what is charts?" to "combination of indicators". I am travel in technical analysis with my very good friend s. They are also haves same background as liked me. We are passes road hand in hand. All things found necessary before go ahead in this article.

Today when I was discussing with my friend, I was found some interesting fact about technical indicator. Those all discussion raise question in mind which is heading of this article.

While when we are use various indicator one most important thing we must keep in some important point in mind
1.Most or all indicator are lagging indicator. ie. They are take past data as input to show output to us. So they only helps to assume entry or exit.They are not exact point.
2. Moving average is father of all indicators.
3. We can use various combination of indicator to make more precise analysis, which is cause of notional loses.
4.As we use more precisely than chances of whipsaw are proportionally increase .

If you understand and very well go through above points, then you are also probably raise question that really indicator held us to entry and exit. Your opinion also different than me. If you have another opinion than me, feel free too share your knowledge with our reader. After all it is open source era.

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