Should I rely on technical analysis on investing.com?


#1

I find some scrips that is considered undervalued (for example JnK bank) but but when I check technical analysis all different time frames including monthly analysis (long term) moving average and technical indicators says SELL …so I am confused should I buy or not?


#2

Either way , the probability of making a wrong decision is 80 -90%.


#3

All the data given in the technical analysis section of Investing.com is only for reference and based upon definitive formulaes. You will always get mixed signals for different time frames. You will have to first decide the time frame in which you wish to trade and then refer that time frame on Investing.com. You should always make an informed decision based on your own trade plan and not rely fully on these sites.


#4

so what time frame should I choose?


#5

Which time frame to use is normally something that depends on your trading strategy and type but as a general thumb rule you can refer the following;

  • Intraday - 5min to 30min
  • Swing (weekly) - 1hr to 4hr
  • Positional (monthly) - 1D to 1W
  • Long term (yearly) - 1W to 1M

Note that these are just for your references and not something pre-defined.


#6

You are still newbie I think. Try paper trading, avoid real money.
Always trade short term in the context of long term.


#7

DO NOT use tech analysis … it is LOSS making
All indicators oscillators are lagging … they depend on price … make strategy using pure price mvement (or traders psychology ina particular stock) or second best is volume


#8

You want to use a thing (for profit making) which should predict a stock price that itself is dependent on price


#9

So there is no leading indicator?


#10

No my friend and thr shall nvr be … dnt fall prey to thse so called stock mrkt leaders n institutions n tips … they are themselves making money thru teaching