I have been following the stock markets since 2001, and since then I have been a follower of technical analysis which has the power to predict the future and stock trends and obviously trend reversal indications as well. In India there are three types of normal traders, one who is against technical analysis, the second one who is less concerned with technical fundamentals and wants to trade the stock market based on advice, the third one who wants to follow/ use technical analysis Methods to take entry/exit in the stock market.
I am always a follower of technical analysis and always will be as it never fails yes it can fail only when your interpretive skills are wrong and I keep this in mind that charts never fail.
If any trader tells you that technical analysis is a complete failure or useless, then these are those people who have not been able to interpret the charts successfully, it’s like a difference between an amateur doctor and a seasoned professional doctor, you take your lung x-rays to both of you, the amateur doctor says that you do not have Tuberculosis, and the professional doctor says that if you do, where is the difference? It is in the interpretation skills, the wrong diagnosis of the doctor in an incorrect interpretation can cause a lot of trouble!
Same goes for charts = x-rays, I’m trying to compare charts to x-rays because just like x-rays are a negative impression of your body, the same way charts are an impression of any action. You have to learn the interpretation skills to understand what is happening in the stock and what is expected to happen in the near future, a trend reversal or a trend continuation?
Charts explain everything about the future and short-term movements of stocks.
Technical analysis is a broad subject and people (traders, investors, hobbyists) are slowly becoming aware of this science as a gateway to successful intra day trading and yes long term investing using some software. of technical analysis and trying to find out what is expected of the next day based on the stock filtering technique using some parameters built into the software.
One such program is Metquotes, which can be downloaded from [http://www.metquotes.com] and it is developed by myself in vbasic .net this software uses my scanning methods and generates reports based on filtering methods using end of day stock quotes you also download this software from http://www.nseindia .com
This software only scans on EOD (End of Day) data, it does not provide real time data, now you may wonder why this software is based on EOD instead of real time data. the answer is, it is not required at all.
Many merchants these days buy real-time feeds from vendors on websites and get paid 3000-5000 per month just for the real-time feeds, which are mostly supported by METASTOCK PROFESSIONAL, a product of Equis, available at http ://www.equis.com
What I tell my clients… is that you don’t need real time information from these providers, instead choose a good broker who can provide real time quotes in a trading terminal which can be very cheap and you have to pay just one time fee, Rs200 or Rs500, that’s all!
Trading terminals have real time quotes and stock charts can be viewed on those terminals, stock prices change every two seconds on that terminal.
I have used all the trading terminals, the best currently available is Angel Anywhere, from angel broking, http://www.angeltrade.com
Their software is quite well designed for professional technical analysts. You can view 6-10 charts at a time easily in the terminal, plot all kinds of indicators on the charts, and you can have both bar and candlestick charts. I normally use Japanese candlesticks for analysis, so by default when I log into the Angel Anywhere software all settings are loaded, which I obviously saved since the last login.
My intraday trading method is to scan the METQUOTES EOD data, pick the best stocks based on volume and price breakdown, then analyze the charts of my chosen stock in METASTOCK PROFESSIONAL and calculate resistance and support. levels
The next day, I track the same stocks and take buy/short positions on those stocks.
This sounds quite easy but requires a lot of hard work, the phrase EASY MONEY does not exist in the field of technical analysis.
The main system that reduces my technical analysis time is METQUOTES, as it scans for breakout stocks and filters out lags.
metquotes is on [http://www.metquotes.com]
That is all for now!