The best methodology for Analysis

As mentioned in one of our articles , there are multiple ways markets can be analysed. Some swear by the Technical indicators where as there are fanatic followers of elliot wave theory. Some would like to go by only the fundamentals and some a mixture of fundamentals and technicals.

Listing out all the possible ways of analysis will probably help in the debate

  1.  Technical Indicators
  2.  Elliot Wave Theory
  3.  Dow Theory
  4.  Candle Stick Theory

I have added another three

5. Supply and Demand zones.

6. Fundamental Analysis

7. Pattern recognition

All above have their negative moments. Times when all the technical Indicators will go wrong, or the elliot wave theory will throw up totally unexpected counts, candle stick theory which may start giving different results in different time frames.

Just as a master craftsman knows the use of each and every tool available and also improvises to make new tools for the task in hand, similarly I believe that to get to the right analytical answer , one must know all available methods available. And one must use all at different times.

It is our experience that different types of analysis work at different times. Relying on moving averages for example in high volatility will certainly take your money. On the other hand just relying on elliot wave specially in sideways market can give you wrong counts every time.


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