Dislikedyaed , your philosophical look on price action is the best thing that i came across since i found D & G . keep up you good work and i am extremely sorry to hear about alpari story. i heard KPMG is working on with alparis Client Money Pool hope you will get your money back asap.Ignored
That is encouraging. What is D & G?
On a further note: I dont want to bullshit you. So let me tell you a secret. The areas where price seem reluctant to remain or bounce at is the places that are interesting. Places where price repeatedly is reluctant to remain is even more interesting. People nag so much about pips and stoploss and take profit and timeframes, on and on. They arent seeing the forest because of all of the trees. Theyre heads are already filled to the brim with ideas about how it should be, even before they make their first trade. A lot of people already even have a fixed idea on how to enter, what timeframe, what stoploss, what take profit, what risk/reward ratio they are looking for. They have these ideas already in place as they try to aquire the knowledge of how to trade. But that IS the knowledge of how to trade. Theyre minds are so set already in advance, that they cannot entertain ideas and hypothesis. They think they know what to do even before they start.
The lines, or the areas where price is reluctant to remain/bounce ARE the places to use for basis on how to calculate all those things. Thats the most basic knowledge of how to trade, the most fundamental knowledge on how to trade. 90% of the people here have no clue about that. Of this i am quite certain. I might be wrong. But i think i have the evidence to back it up.
Indicators and other simple math cannot calculate these levels. But a human brain and a pair of eyes can. Advanced mathematical programs can make these kind of calculations, but i havent seen anything even remotely close to that on forex factory or anywhere else on the internet. Its not hard to imagine reasons for that.
Why is it that there is so much false information about how to trade? The reasons for these circumstances is probably manifold.
- The best explanation i know i have already touched on: People are too filled up with ideas on how to trade even before they begin. They have ideas on how much money to make and how fast they are going to make it. They fail to see money or the abscence therof is the end product of a very long and complicated equation dealing with highly unknown variables like "Patience", "Focus", "Empty/full" and so on. The faults of these trading strategies are perpetuated by people of this type and in this kind of situation.
- I think there are missleaders: Both 1) scammers whose main intent is to get people to "fund" them, and 2) people who are simply spreading lies about trading. Sometimes one person does both things, though the later type person is probably a bit smarter and a bit more well funded. I think there are people of both categories here on FF, but only a few of the later category and many of the first. The liers are probably funded by banks.
- The social effect: People wants to feel appreciated and wants to hang out with other people. Some people become desperate, sitting around in their underwear in their mothers basement eating Cheese doodles. These people use FF and the rest of the internet as a social thing because for different reasons they substitute the internet for "real" social acts. These people perpetuate bullshit and lies because it is the only way of social conduct they can think of.
While i am at it, let me tell you another secret: Price is not pre made. Or if it is, i need to act like i dont know how anyway, since i dont know any way of getting the information. So any trader needs to act without knowing or ever getting to know any pre planned levels. This is the basis and problem of technical analysis. But and this is a big important BUT, that doesnt mean there are no clues to point you the way unto what price will be in the future. You gotta be smarter then some of the smartest brains in the world. Not that they are very smart... they are actually quite stupid most of the time. Well, the clues are there. Like i said recently: Aint nothing random about it.
So, price is not pre decided, but there are still clues to tell you where its going. It may seem impossible. At least to me, for many years it seemed impossible. Now i know better. Think about it this way: A flock of birds searching for food. Its not predecided four days in advance where the flock will be. No biologist could give you their exact coordinates exactly four days in advance. But as they rise from their current position you see in what direction, and if you have a map of their area you can guess where they are heading. Maybe on the way they might smell or see something nice and divert their course, but most probably they will fly as they where headed to the closest place in that direction where they usually hang out and look for food.
The bird analogy is not very far fetched, since we are in essence still talking about a flock behaviour type thing. Only the flock is not a matter of amounts of people but amounts of money. It doesnt matter if its 1, 6, 49 or 126.549.546 people doing it, what matters is the amount of money.