Technical analysis in Equity or Future


#1

i do trade in Future. i found the Candle pattern is different in equity segment and future contract. one is give the buy signal and another is neutral.
so which is better for TA, in future contract or equity ? i want to trade in future segment.
i think i am lacking fundamental please help to understand.


#2

Hi @Darshan,

If you are analyzing the charts on the daily time frame then it is always preferable to look at the equity chart. This is because you will have much more data to look at and and develop much better understanding of supports and resistances. The futures data would hardly be of a few months.

However, if you are looking at the intraday chart, it’s better to look at the charts of the futures contract because sometimes the premium/discount on the contracts can be significant and spot prices can be misleading.

Hope this helps.
~Neha (vrdnation.com)


#3

In my views, Technical analysis and chart reading would be better in equity.
In equity chart, yiou will get more data to anlyse compare to futures.