Question

Indices are invaluable to traders, momentum investors, technical analysis of the capital market and all others. Explain the statement.​

Answer 1

Answer:

Technical analysis is a trading discipline employed to evaluate ... What Is Technical Analysis? ... In other words, a stock price is more likely to continue a past trend than move erratically.

Explanation:

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Answer 2

The given statement is explained as follows:

Explanation:

• Indices typically indicate the ephemeral sentiment of the market.  

• As the saying goes “a rising tide lifts all boats”, the movement of many stocks, but not all of them, follows the index movement.

• Hence, indices show a generalized stance, and generalization leads to vague forecasts that are of no use to most traders and investors, be them of any kind and the market analysis as well.