TA of Indices..

[PaddyMcTaff]

So, it is fairly commonly said not to trade against the market as most stocks will follow suit. My question is; should the Index the stock you are interested in be asessed using the same technical analysis techniques as would be used for individual stocks according to your particular system, e.g trend lines, s/r, MAs, oscillators etc...

Cheers...

 

[Trader333]

In my view the answer is Yes and No as it depends on the current market situation. For example, if the index is trending then it makes sense to use similar techniques on the index as the stock you may select to trade. However, if the index is not trending or is consolidating then the techniques that I would use to trade a stock are not applied to the index.


Paul