Nifty Trading Software
Technical analysis software can help with timing a proper entry point. some analysts use fundamental analysis to decide what to buy and just what to market, and technical analysis might help in deciding when to buy .There is no secrete that timing can enjoy an important role in performance .Technical analysis can help spot demand/support and supply/resistance levels as well as breakouts .simply awaiting a breakout above resistance or buying near support levels can improve returns.
It is also vital that you know a stock’s price history. If a stock you thought was great for the last 2 years has traded flat for those two years, it would appear that market includes a different opinion .If a stock has already evolved quite a bit, it might be prudent to wait for any pullback, or maybe the stock is trending lower, it might pay to hold back for buying interest along with a real trend reversal.
Weakness of technical analysis
Just like fundamental analysis, technical analysis is subjective and our personal biases can be reflected .It is important to be aware of those biases when analysing a chart. If the analyst is a perpetual bull, then bullish bias will overshadow case study. On the other hand, when the analyst is really a disgruntled eternal bear, then your analysis will most likely possess a bearish tilt.
Available to interpretation:
Furthering the bias argument is always that the technical analysis buy and sell signals, is available to interpretation. Despite the fact that you will find standards, many times two technicians will appear in the same charts and paint two different scenarios, or see different patterns. Both can develop logical support and resistance, as well as key breakout levels, to justify their position. While this can be frustrating, it ought to be pointed out that technical analysis is more like an art than the usual science, somewhat like economics. Is the cup half empty or half full is in the eye of the beholder.
Technical analysis has been criticized for being past too far .By the time the popularity is identified; a considerable portion of the move has already occurred. After such a large move, the reward to risk ratio is not great. Lateness is particular criticism from the Dow Theory.
Always another level:
Even after a new trend continues to be identified, there's always another essential level readily available .Technicians has been accused of sitting on the fence and never an unqualified stance. Even when they are bullish, there is always some indicator or some level that will qualify their opinion.
Not every technical signals and patterns work. When you start to study technical analysis, you will come across a range of patterns and indicators with rules to complement. For example, a sell signal is offered when the neckline from the head and shoulders pattern is broken. Although not the rule, it's steadfast and could be subjective to other factors, such as volume and momentum. Different color leaves, the things that work for just one particular stock might not work for the other. A 50 day moving average may go great and can identify support and resistance for Infosys, but a 70 day moving average may go better for reliance. Although many principals of technical analysis are universal, each security may have its very own idiosyncrasies.