DislikedHello Traders, Trying to put this lesson together mentally first before I present it to you but I wanted first get a sense on your take on the market. What is your basic premise on what the market is? What are your beliefs? Is the market completely random? Can a trader actually have advance insight as to what might happen next? Can one forecast with extreme accuracy the future path of price? Give me your take on these challenging questions and this will help me with how best to present what I would like to accomplish this week.Ignored
For me, the forex market is just like a physical marketplace where an enormous amount of people gather to either buy or sell products.
Is the market completely random?
The very first time I looked at a market chart, it did seem random to me, but as time passed I have seen that it isn't entirely the case. I believe that fear and greed are major factors in market movement, and as far as I know, fear and greed aren't random. As price approaches a certain level, these emotions will build up and the actions from those emotions will cause price to move accordingly. I think this is why familiar movements such as the impulse-pullback-continuation (which is simply AB=CD/ABCD) movements exist.
Can a trader actually have advance insight as to what might happen next?
I think it is possible by looking at price, where it has been, and where it has reacted. I haven't been good at this though. My trades have always been based on late reaction in the attempts to follow the dance (which pretty much ends up always reversing on me).
Can one forecast with extreme accuracy the future path of price?
Before I started reading through this thread, I really don't know the answer, since forecasting and expectations are pretty bold statements. I have read from certain resources that it is never good to predict the market with your analysis. Reactive trading was always being put above predictive trading, but I guess this reactive trading is just another word for 'retail trading'.
After going through the material here though, I pretty much can say 'Yes'.