Every strategy has its own set of pros and cons. Trend following indicators like moving-averages and break-out systems fail in a trading-range like the one that is developing since last months.
On the other hand, if you use oscillators like stochastics, they will remain in overbought/oversold conditions for long periods during trending times.
Thirdly we have a set of classical patterns of Technical Analysis that have a certain probability of success.
Hence, in a dynamic world, to develop a consistently profitable strategy will first require us to determine what works in our own market during various conditions. Remember, the market always shifts from trending to trading mode and vice-versa. Open your tool-box and see which indicators have worked well during trending and trading modes. For which sectors they have worked well. Which patterns have a high probability of success.
A successfull strategy is always coupled with common sense. There are some universal and time-tested aphorims in the world of trading.
One such truism is, "The trend is your friend". Refer to this EOD chart of NIFTY:
http://www.traderji.com/attachments/technical-analysis/11035d1233734111-nifty-retest-2300-2250-nifty.gif
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It was apparent as early in March-08 that the trend was down. Any person sincerely believing this truism could have made substantial profits in the coming months by remaining short since then. But as they say, "Common sense is very uncommon in this world". The world's simplest and most profitable strategy: "The Trend is your friend".
Another such truism is, "Bulls live above 200DMA and Bears live below that". Just estimate the annual return you could have achieved had you simply went long when NIFTY went above its 200DMA, and short when NIFTY broke below it! Of course, it is for investors and not traders.