When it comes to market analysis and predicting its behavior technical analysis and chart patterns form the basis of examining price actions. You just cannot do technical analysis on a fly rather I would say it is an art of forecasting future price based on past price movements. It is not gambling rather has a proper method on which technical analysis works.
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But the real confusion starts when you will find that there are numerous technical indicators available and which one you need to follow, to get the most accurate result.
You won’t believe I faced yet another problem.
I used to analyze through 8 different technical indicators and my screen used to be full of indicators, being immature I found that these indicators rather contributing me to analyze prices, made me confused and when I would come to a conclusion, I had already crossed the time frame.
I hope by this time you have already realized how important it is to stick to the market timings. Investors even follow market timings only, to earn money through Market timing investment strategy.
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So what you need is proven technical indicators that you can rely on to analyze trend, price variations, and forecast price movements and that too in really short time without any confusions.
After going through many indicators I found these 4 technical indicators that if followed will never mislead you.
The 4 most accurate technical indicators are:
1) MACD: If you want to know the direction of price momentum this indicator will make you happy. It can show the trend direction and potential time to buy and sell stocks rather I would say entry-exit time in the market.
2) RSI: Relative strength index will help you to know the market condition when there are overbought or oversold levels. So with this, you can estimate that when buyers will stop dominating and price will start changing its direction and vice-versa.
3) Bollinger Band: This will help you to analyze relative strength of market price and potential price where the trend may change. When used with other trend reversal pattern can help you jump into conclusion quickly.
So you can see with these 4 technical indicators you are getting almost all aspects of market behavior which makes you sufficiently informed before you start thinking of market investment.
If you get handy on these technical indicators and use it along with candlestick chart patterns you won’t miss any opportunity to invest within the proper time frame.
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Technical indicators can help you judge the behavior of the market and communicate with its actions. All you need to have is proper knowledge, quick in your timings.
The most crucial thing you need to do is manage your money. Relying on indicators and charts and risking all your hard earned money won’t help you to become rich. You should have proper risk management and ensure your money is safe.
After all market is full of uncertain trend reversals. Traders here are smart enough to drive the market in any direction so you need to be smarter to outstand them.