Quote from Trader.Fighter:
OP,
What's the point of the technical analysis of the past?
I always get a kick out of those old "marks".
Only the present and future matter, rest is over.
Well , thats how i operate and judge the markets.
Iam not here to convince you that this is the way to trade
or something, but the past does hold some information in it
it represent the prints, ie. the trades which have been fasciliated
, where value is and where price got rejeceted, where is balance
and where imbalance , where demand or buying pressure is
present or where selling and supply is overpowering or where a
shift or change in behaviour in supply vs demand takes place etc..
btw. Your Present , might not be the present of another
participant, as you know, there are Longterm and shortterm
traders/investors etc..alike Different participants have different
timeframes for buying and/or selling; longer timeframe
participants seek to buy low and sell high,and short timeframe
participants must transact sooner and cannot be as
discriminating. In other words, a given price is not viewed as an
equal opportunity for all. The market cannot at any one moment
balance all the needs and concerns of the entire marketplace -
participants in every known and unknown timeframe
- since the most recent price does not represent the same thing
to all participants. In other words, no single price represents fair
value
Most of the popular prejudice against charts is due to the fact that
many people mistakenly attempt to use charts in a mechanically
fashion. They endeavour to draw diagrams or imaginary
geometrical patterns on their charts and as such lead to error and
fail. When you study charts look for the motive behind the action
which a chart portrays. Aim to interpret the behaviour of the
market and not the fancy patterns which the chart accidentally
creates.
and right know AA does have recent signs of strenght in the
background , however we are at an location where it wouldnt be
wise to go long, as we sit at a resistance level , we need to watch
how the market acts at this level ,, does it breakout? if so how
does the market react to it ? how can i participate? does the
market reverse ie. rejects resistance? if so how does the market
react to it ? how and in which way can i participate?
i know what i will do ... do you ?
