When approaching technical analysis, you will find thousands of indicators that traders and market gurus alike swear by. You can find thousands of indicators on every chart platform. And with most technical analysis being available to the public for free, (www.freestockcharts.com for example), it leaves the trader asking which one is best suited for them.
I personally do not believe in any form of technical analysis that does not offer a look into future movement. Forward analysis is simply using an indicator or methodology that will give potential future entries into a stock. Since most indicators do not offer a great sense of forward analysis, I simply do not use them. I do not believe in any indicator that does nothing more than paint a technical picture of what has happened already, without offering me a high probability glimpse into the future. And when I see probability, I’m looking for 70%. Also, when using technical analysis in general, you must remember that these things were created prior to the existence of black boxes. It is of my humble and firm belief that many forms of technical analysis that were effective in the pre-black box era are no longer effective today.