At MCXlivedata.in, all analysis is carried out using proprietary Profit Raining PLT Data Analysis Engine. We do not rely on moving averages or RSI or Ichimoku. Why… Read below?
Theory of trading by Sachin Ravi @ Profit Raining:
Why Indicators are 99% times useless?
Trading industry has evolved into complex relations between operating entities like brokers, sub-brokers, educationists, investments firms, and so on. More you trade, more benefits the entities get. But when you do not know how to trade, the choice for making you trade is limited with any broker or sub-broker.
Thus came indicators. Indicators are lagging piece of information that tells you what has happened till now. But it has abysmally low power to project or predict the price. Thus when anyone tells you to use indicator for trading, they are telling you to look into the past for risking money into the future. Which I think is wrong.
Said that, it does not imply not to use indicator at all. Certain indicators can hint at possible behavior of market depending on certain events. At mcxlivedata.in, we use these to help our users. Refer to charts from menu link to check these charts live for MCX commodities.
Evolution of HFT
Now that the trades are no longer floor based calls, role of computers has replaced traditional traders and brokers. These days decisions are taken by computers. These computers use program to place, cancel orders. It is done at very high frequency depending on changing market scenario every moment. Programs analyze complex data to take decisions. With decisions more or less dependent on data levels now, computer programs are designed to react to any situation with pre-defined action strategy. Even if news flows little late, computer programs know what to do at what price level.
If you want to know direction of price action flow, you have to know about price levels. Target levels and Stop loss need only be plotted with reference to correct price level. Rightly said, there is no upside or downside of market, there is only right or wrong side of the market. If you know price levels, then you know which side of market is right. As soon as price moves above or below pre-calculated levels, direction of the trade changes. Thus right ride prevails.
PLT Data Engine
Profit Raining’s proprietary method to calculate price levels based on past price actions and behaviors provide levels, targets, and stop loss. It analysis on the fly the action of the price at any particular level and recommends trade and best entry levels.
Check our PLT Data Engine based analysis live at mcxlivedata.in.