A lot of traders, especially new ones, put a lot of trust in indicators thinking that prices would go and go directly to where the indicators say they should. A lot of traders believe that indicators can forecast the limits of behaviour. Traders believe that indicators can tell them what is reasonable or what is predictable based on the past.
The market as a whole is not reasonable; prices are set by traders, traders are impressionable and imitative, they are herd animals and follow the crowd either up or down, identifying the direction of the crowd is key; follow the dust trail, the noise of the stampede.
Prices and spreads vary they are not an arithmatic concept and fluctuate based on the societies they represent, Euro, USD, JPY etc.
Uncertainty is an indefinite condition, it does not follow indicators, it cannot be calculated.
A good dose of self doubt and perspective needs to check the indicators and what it is telling us before a trade is placed.
Even when traders get things right, prices cannot be expected to oscillate with precision of Elliott Waves or follow fib or trend lines precisely.
Today's prices cannot be inferred by yesterday's trend and data alone; trading should be a "whole" concept where all information is taken in by us the traders and a decision is made based on our interpretation of data.
A good trader is intuitive, using technical data, fundamentals and his "gut", his experience to enter and exit a trade succesfully.
Keep it simple, a few indicators that work for you (knowing their limitations) a TF and pair that you are comfortable with and have studied, one eye on bloomberg/yahoo/cnbc/bbc/ft/wsj, a good understanding of Price Action, risk vs reward, money management, lot sizing, support and resistance, trend lines, and off you go.
My 2 cents
The market as a whole is not reasonable; prices are set by traders, traders are impressionable and imitative, they are herd animals and follow the crowd either up or down, identifying the direction of the crowd is key; follow the dust trail, the noise of the stampede.
Prices and spreads vary they are not an arithmatic concept and fluctuate based on the societies they represent, Euro, USD, JPY etc.
Uncertainty is an indefinite condition, it does not follow indicators, it cannot be calculated.
A good dose of self doubt and perspective needs to check the indicators and what it is telling us before a trade is placed.
Even when traders get things right, prices cannot be expected to oscillate with precision of Elliott Waves or follow fib or trend lines precisely.
Today's prices cannot be inferred by yesterday's trend and data alone; trading should be a "whole" concept where all information is taken in by us the traders and a decision is made based on our interpretation of data.
A good trader is intuitive, using technical data, fundamentals and his "gut", his experience to enter and exit a trade succesfully.
Keep it simple, a few indicators that work for you (knowing their limitations) a TF and pair that you are comfortable with and have studied, one eye on bloomberg/yahoo/cnbc/bbc/ft/wsj, a good understanding of Price Action, risk vs reward, money management, lot sizing, support and resistance, trend lines, and off you go.
My 2 cents