InvestorQ : Can you tell me the technical indicator that is likely to give me the best results?
Mary Joseph made post

Can you tell me the technical indicator that is likely to give me the best results?

Answer
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1 year ago


Unfortunately, there is no technical indicator that can be perfect in isolation in all situations. Most of these indicators work in specific circumstances and under certain conditions. Also, it is best to adopt a combination of indicators to get cues and also ratification of what you are trying to get at. Keep in mind the fact that no technical indicator is perfect. None of them gives signals that are 100% accurate all the time.

How exactly to use the technical indicators then? The smartest traders are always watching for warning signs that signals from their chosen indicators may be misleading. Most signals can be predictive at times and misleading at times. It is the ability of the technical analyst to separate the wheat from the chaff is what really matters. Technical analysis, done well, can certainly improve your profitability as a trader. However, what may do more to improve your fortunes in trading is spending more time and effort thinking about how best to handle things if the market turns against you. Technicals should always be done with a Plan-B in place.