Indicators(TA)

[markuzick]

Thank you all for your replies. Found them to be helpful. Seems indicators need to be taken with a gain of salt. Hummm it seems I used the wrong terminology, "indicator". I apologize to Xela. I was looking at the "technical summary" and the "technical analysis". They use "buy" and "sell" so my question was if they say "buy" would you buy puts? If they say "sell" would you buy calls? Would this work most of the time or is there a flaw with this line of thinking?

If a summary says "buy", to follow it means to buy a call - not a put.
Indicators work best in trending markets. If you're good at guessing whether the market will be trending or choppy, you can make money by following indicators during trending times and trading against the indicator during choppy times.

 

[jimmyjazz]

Yes, it's not clear if the concept being floated is contrarian (market says "buy", then "sell") or if there is a fundamental misunderstanding of the function of a long call versus a long put.

 

[The Rookie]

Technical summary and technical analysis lately have failed to guide. This week one day it was bullish and the market ended bearish. Is this because you need more tools to go along with this one?