The reason is quite simple.
ALL professional traders, be they trading for themselves or for banks, financial institutions, funds, and the such like, adhere to the concept of support and resistance, which is the premise behind my system.
When you see price violate a pivot point convincingly, there are automated trading systems out there that automatically kick in and buy or sell, depending upon where price is going.
So, in essence, these two factors alone account for why other indicators are left breathing dust. Bar patterns, MACD divergence, different time frame readings, and trendlines are definite precursors to price changing direction but, in the final analysis, where price is in relation to its nearest pivot point, is the big clue.
Tie all these indications together, and you are sure to out-fox price's next move.
ALL professional traders, be they trading for themselves or for banks, financial institutions, funds, and the such like, adhere to the concept of support and resistance, which is the premise behind my system.
When you see price violate a pivot point convincingly, there are automated trading systems out there that automatically kick in and buy or sell, depending upon where price is going.
So, in essence, these two factors alone account for why other indicators are left breathing dust. Bar patterns, MACD divergence, different time frame readings, and trendlines are definite precursors to price changing direction but, in the final analysis, where price is in relation to its nearest pivot point, is the big clue.
Tie all these indications together, and you are sure to out-fox price's next move.
1 التعليقات:
Warren Buffett once said, "I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer" and "If past history was all there was to the game, the richest people would be librarians."
So far technical analysis has not been subjected to the rigor similar to other analysis, what is found so far and there are some recent elements of support to this is that they are not a good predictors, it is at odds with efficient market hypothesis, behavioural finance, and random walk hypothesis as well as lack of scientific evidence
The advent of neural-nets and complex algo trading will affect this type of analysis since it will reduce the spreads drastically and arbitrage within milliseconds from the window horizon so I expect few books will be rewritten in the near future