In trading,there are two schools of analysis, Technical and Fundamental. ( There are others that you might not want to know: Daw theories, ChikaMinute News, and TA - Tsismis Analysis, etc etc)
Why stick to Technical Analysis while Fundamental seems to be readily available? Why complicate with the charts with different colors and forms ? It looks so difficult!
Well, yeah, fundamental information are everywhere, when you have all the time to read you can sure practice it! But just after you read all the information you need, others are already selling!! Have you ever heared of the quote "sell on news"? It's the technical analysts who sell to the fundamentalists! Just before the news comes out the technical analyst already took a position based on chart, after the news breaks out, it's his time to sell!
Technical analysis is useful in any trading position, day trade, medium term or long term. Day trade uses volume, candle sticks, price action as tools and indicators. Medium term uses breakouts on patterns accompanied by volume. For long term, trend lines and long term patterns are useful.
It gives us the essence of timing. It helps us define our entry and exit points. When to stop and go! Technical Analyst respects price action and the trends!
Technical Analysis is a useful tool, but it couldn't be an effective one if not understood well. The Psychology behind it should be internalized and learned thoroughly. When you look at charts you don't just look at price movements but how the traders react and act!
I owe my jump start to my recent community, The Absolute Traders. It gives me the confidence to start correctly on TA and the enthusiasm to continue the quest of learning by continuous support.
Absolute Traders had given me the proper welcome to the community by giving me proper education which my community and I considered priceless. I am hoping to share my trades here. As you continue visiting my site, please post your request for some charts you might want to watch or analyze. Let's share and learn together! Ayo ayo!
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