Quote from ammo:
from xpurt " What I can't explain is the "why" price will reverse on a sudden spike to an exact reversal point " there are a lot of ways to look at it but it's not rocket science,one way is the mean reversion http://imgur.com/gItMy28 and cornix asked " if swing traders have different brain areas "activated" during their analysis of the markets, assuming they spend much more time in much less rush and process of trading is much less active decision-making for them?" the answer is day traders look at a subset of timeframes where swing looks at a larger set, above chart is a day trade reversion,aapl chart is a 4 yr multi reversion ,same brain multiple timeframes, http://i.imgur.com/qEXqwRf.png
back to building the house analogy,pulte may be building a tract of homes,an architect may be one of several drawing plans ,many tradesmen per house ,doing individual pieces of the project,collectively ,the tract gets built..so the swing and daytrader are just 2 of the many toothpicks in the project
Well, my point was that day-trader is under additional pressure of fast decision making, while swing trader is not.
Technically price action analysis is much the same of course with the difference of day trading of more emphasis to short-term inputs, such as bid/ask volume, DOM etc.

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