If you don't agree with me, that's fine. Start your own thread. Please stop contaminating my threads. This is a not so polite request to keep your own words in your own threads, and to please allow me to keep mine in my own threads without contamination.
YES, THAT MEANS YOU TOO.
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So many have asked, so here it is.
How I read a chart and why...
I read a chart simply from right to left, not from left to right.
The reasoning is simple, if price is king, and time is the queen, then your royal pairs are current price. Plotted on a mobile XY, which is what a price chart is, the right side is the most recent.
Postulate: Price Discounts Everything
Postulate: CURRENT Price discounts previous prices
Applying these two in tow, the only way to read a chart correctly is to read it from right to left, starting with current price.
I call this "Chart Endianness", and it is right to left, not left to right.
If you read a chart left to right, then decisions are made based on relationship of current price as a delta to past price.
If a chart is read from right to left, it is a question of price action and current price, and if need be, a reference to past price as it relates to the current price can be made.
Left to Right:
current price = f(x)
x = past price
the current price thus is a manipulation of the past price.
In calculus, while the area under a smooth curve can be calculated, and in fact the length of the curve can be calculated, the interesting part is regardless as a approach to zero or to infinity, any measurement taken, in which a location or quantity is required to be identified, you still need to point to it in a SINGLE POINT IN SPACE AND TIME. Thus, our 2D reference is yet again, a reference of space and time, even if it's smooth and continuous. That means then, which current price might be a cumulative manipulation of Sigma-past prices, to refer to it requires that we address it uniquely by itself. The theory then leads us to say, it's not even about reading the chart right to left, but reading the CURRENT PRICE, as the sum-total of all past information up to this point in time.
Thus, reading a chart right to left:
Current price = Sigma-market knowledge from 0->present
delta current price - previous bar = market knowledge delta
Current price = past price + b
where "b" is previously unknown market knowledge/ influence.
thus, reading right to left, tells us the difference in market knowledge, instead of the assumed theory of factorized market manipulants at work, like the assumptions made from left to right.
This then lays the basic groundwork for defining a trend, and drawing trendlines.
The reading of a chart from left to right, does not allow for the correct application of a trendline drawing. The reason is, the trend is assumed to have begun on the LEFT side of the chart, and an attempt is made to force the current price to conform to the past price; conforming "more information" to older "less information". Thus, additional information is either manipulated, or thrown away, or skewed. Because of this, any trendlines formed from left to right drawings will discount current price and information, for previous price and information, leading to bad decisions because new information is not used.
If left to right theory is used, then a trendline is good until it is broken.
If right to left theory is used, then a trendline needs to be redrawn every new bar that shows up, to verify that the trend CONFORMS to the current price, instead of the current price conforming to the current trend.
If an upward slope is shown on the chart, and the price has floated away from the trendline that was drawn left to right; if the current price moves downward greatly, but does not break the trendline, most would say that the trend is still up, even though the current price tells otherwise.
Conclusion:
The very basis of technical analysis, reading a chart, is thus, based on a fraudulent concept. Applying the "fruit of the bad tree" concept to this, all popular methods of trendline drawing should thus be thrown out because it is based on incorrect information.
YES, THAT MEANS YOU TOO.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
So many have asked, so here it is.
How I read a chart and why...
I read a chart simply from right to left, not from left to right.
The reasoning is simple, if price is king, and time is the queen, then your royal pairs are current price. Plotted on a mobile XY, which is what a price chart is, the right side is the most recent.
Postulate: Price Discounts Everything
Postulate: CURRENT Price discounts previous prices
Applying these two in tow, the only way to read a chart correctly is to read it from right to left, starting with current price.
I call this "Chart Endianness", and it is right to left, not left to right.
If you read a chart left to right, then decisions are made based on relationship of current price as a delta to past price.
If a chart is read from right to left, it is a question of price action and current price, and if need be, a reference to past price as it relates to the current price can be made.
Left to Right:
current price = f(x)
x = past price
the current price thus is a manipulation of the past price.
In calculus, while the area under a smooth curve can be calculated, and in fact the length of the curve can be calculated, the interesting part is regardless as a approach to zero or to infinity, any measurement taken, in which a location or quantity is required to be identified, you still need to point to it in a SINGLE POINT IN SPACE AND TIME. Thus, our 2D reference is yet again, a reference of space and time, even if it's smooth and continuous. That means then, which current price might be a cumulative manipulation of Sigma-past prices, to refer to it requires that we address it uniquely by itself. The theory then leads us to say, it's not even about reading the chart right to left, but reading the CURRENT PRICE, as the sum-total of all past information up to this point in time.
Thus, reading a chart right to left:
Current price = Sigma-market knowledge from 0->present
delta current price - previous bar = market knowledge delta
Current price = past price + b
where "b" is previously unknown market knowledge/ influence.
thus, reading right to left, tells us the difference in market knowledge, instead of the assumed theory of factorized market manipulants at work, like the assumptions made from left to right.
This then lays the basic groundwork for defining a trend, and drawing trendlines.
The reading of a chart from left to right, does not allow for the correct application of a trendline drawing. The reason is, the trend is assumed to have begun on the LEFT side of the chart, and an attempt is made to force the current price to conform to the past price; conforming "more information" to older "less information". Thus, additional information is either manipulated, or thrown away, or skewed. Because of this, any trendlines formed from left to right drawings will discount current price and information, for previous price and information, leading to bad decisions because new information is not used.
If left to right theory is used, then a trendline is good until it is broken.
If right to left theory is used, then a trendline needs to be redrawn every new bar that shows up, to verify that the trend CONFORMS to the current price, instead of the current price conforming to the current trend.
If an upward slope is shown on the chart, and the price has floated away from the trendline that was drawn left to right; if the current price moves downward greatly, but does not break the trendline, most would say that the trend is still up, even though the current price tells otherwise.
Conclusion:
The very basis of technical analysis, reading a chart, is thus, based on a fraudulent concept. Applying the "fruit of the bad tree" concept to this, all popular methods of trendline drawing should thus be thrown out because it is based on incorrect information.
google:
