Technical analysis are simply tools to put the market structure into context (not indicators) such as fib. What most traders fail to realize is that the price does not know of 61.8 retracement or rhe trend line is there, these tools simply structure market chaos into order. So.... the market does not have to respect any indicator or technical analysis tol placed on the screen. What makes the trader effective is his ability to read the price flow and descent market structure while being flexible to to change trend bias based on where the price is heading. The limitations are not in the tools but in the traders ability to see what is actually happening, not what he sees on the screens and wills the market to do.
What Im getting at is that a trader must abandon his perspective of what he wants/expects the market to do and pay attention to the right side of the chart. Technical analysis tools will simply put the market into context. Flexibility to change your perspective with price flow is key.
Took me a while to actually understand what this ACTUALLY means. But that is my 2 cents.
What Im getting at is that a trader must abandon his perspective of what he wants/expects the market to do and pay attention to the right side of the chart. Technical analysis tools will simply put the market into context. Flexibility to change your perspective with price flow is key.
Took me a while to actually understand what this ACTUALLY means. But that is my 2 cents.
1