Ok, I suppose I am missing something, but there is a question I am dealing with for months, and I'd like to know your opinions. When we are trading indices, we use instruments like cfds, since an index cannot be bought or sold by itself. Then, I cannot understand why my analysis seems to work, and let me try to explain why: Let's figure out we have an indicator, whatever it would be, called golden indicator. Usually, any indicator discounts the action price, one way or another. But price reacts, if I am right, to overbuying and overselling scenarios, the difference between buying and selling volumes, etc. Then, it makes sense in the case of a given stock, forex pair or whatever: every trade is creating the price action, however... Indices are not tradable by themselves, they are a calculated value taking different formulas. How is it possible that technical analysis still works? A final example: If I buy 500000 Apple shares in a single transaction, it will impact the price. The volume of this trade is making market. But, Theoretically, I can buy 3000000 lots of a cfd based on an index and it will not affect at all the underling stocks, I am not buying those companies.

Hope it makes sense and excuse my English.