The Hidden Secrets of Technical Analysis
In this video novice traders will discover the other side of the technical analysis that they are not aware of, or just afraid to go because it may require a lot work.
There are various way of using technical analysis, but novice traders have two common approach. They interpret the data through classic charting techniques such as the Dow theory to define practice action. The second is using different indicators available from their trading platform such as MACD to represent price action. However, this practice only defines the market's past movements. No matter what indicator or theory you use this just indicates the structure of the market that has already happened in the past.
If you have a complete understanding of the probabilities of prices movement, then this can give you an advantage. But if you want to have an edge, the video suggests that you identify future price action instead, and determine how it will impact your trades.
Take a look at the structure of price movement, speed of momentum, and changes in volatility. Ask yourself how they will affect future price action. Consider the effects on other traders, and how they trade. Discover how you can use this information on your current strategy or position to lower your risk entry, increase your probability, and improve money management and exit.
Quotes from this Video
- Profits come from future price action not past price action
- What is important is the nature of price movement behind that pattern or indicator.
- If you want to improve your edge, you may have to look behind the patterns, look behind the indicators, look beyond the label and see what price is really doing.