Impaired traders are easily identified. They talk in technical terms but have limited their capabilities significantly. They are always waiting on “confirmation”. Waiting for the “break out signal”. I know about those things because I used to do it. Why are they “waiting on confirmation”? Generally, these statements are from people who do candle to candle analysis. Almost always, you can tell from their charts that they also limit their field of vision to accommodate their trading style.
What can you really gain by limiting your field of vision? You will more than likely end up to the same conclusion about this kind of thinking, everything is lagging.
If you understand how the leg up is related to the leg down, would you be able to gain more meaningful insight into what the market is doing? People talk a lot about support and resistance but have no real clue how to use them. People do understand that what was support becomes resistance, but because they are stuck reading candle to candle or have limited their vision severely, they can’t think ahead to use what they know. Chart patterns are useless to them also because they never know how it will form.
People who don’t understand S/R rarely ever get where the market is going to go. Near term or long term. They understand what is a projection. Much like how they would concede that this AAPL should retrace back up to 360, but may have gone long just before 356 and end up ruing the trade.
They would claim that the problem was contradicting time frames. It is so bullish here but then the shorter time frames were contradicting but they know it will go to their target. Again, ignoring the simple relationship of S/R and not understanding how price must obey their simple rules.
But what of the contradicting time frame or indicators of the lower time frame?
The only person thinking it was contradicting was really you. You see, the lower time frame knew that there is a significant level coming up, so it must prepare for the response as it approaches it. Technically, nothing can happen unless it is set up to do so.
I love how the news blamed the continued unrest that developed last Friday to cause the sell off. But if you read your technicals correctly, the sell off was pre-determined. It was setting up for weeks.
Do you see how it has been distributing? And where will distribution take you?
Where did the leg start from? Even in your higher time frames, its clear. Progression is how things work out. Progression tells you how things set up. But people don’t care for progression. They think that anything on the left of the screen is nothing because everything on the right is a product of global events. Cause and effect. The funny thing is, they don’t understand that cause and effect is the true nature of progression. To help the visually impaired people trade they plot ma’s and fibo’s on their screen. But even then, they aren’t really sure how or why it works.