Secrets of Technical Indicators in Stock Market

Indicators are designed using price and volume to help traders to identify entry, exit and stop loss. All indicators work in market but all indicator doesn't work all time. New traders had run or still running behind indicators and few experts knows how to sell these indicator by customizing it.

Indicator with default setting will work better, no need to change any settings.

A basic indicator that one uses is designed after doing research for years. There's logic attached to it. Try to understand basic logic behind any indicator that one uses.

If you understand the basic logic and functioning of the indicators then you will automatically get the answer that why all the indicators doesn't work all the time.

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1. Few indicators that work well in trendy market are: Moving Average, VWAP, Supertrend, PSAR

Moving average indicator in trending market: Hdfc had took support at 150 ema and bounced from there.

2. Few indicators that work in choppy market is: Bollinger bands.

In choppy market, bollinger bands squeeze indicated that there would be a sharp move in coming days.

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Check all these indicator under different market condition. If one is using and it worked well in the past but now its not working that means current market condition is not favorable for that particular indicator. Note it down in your journal so that whenever such market condition occur in future then you will avoid taking trades based on that indicator, Also note down which indicator had worked in particular market condition.

Market is like amoeba, it keeps on changing. If you have to survive here for long term and make decent returns then you should adapt to these changes quickly.

So stop running behind marketable and fashionable indicators. It will just empty your pockets. Most of the time its marketed on the charts where it works. So focus on your setup that suits your style.

Today even few professional traders are using taking trades based on basic setup. If simple things can work for few then it can work for others as well provided one knows the right time to use those right strategy. Just remember one thing, Indicators are lagging always as its derived from price and volumes. So try to use less indicator and rely more on price and volumes. Please like and share with others if you like this blog. Follow on Twitter for more updates: YMehta_