“Reference the the immediate leg for your current price action and reference that leg to the primary leg to see the bigger move”. Imagine if you knew about legs. Would it have prevented you from shorting 43. So sad how people were trying to short earlier but didn’t see that we are working to retrace…
KEWLTECH: Issue 068 – Lesson on Distribution
I love the reaction this morning when the market just dropped before the open. WTF happened they say. I love the remark afterwards. I predict a lower open. I know the guy was saying the latter in jest. But what are the technical reasons for the sell and why was it so aggressive? The distribution…
KEWLTECH: Issue 067 – How That Werk?
How come it popped? Anyone? Anyone? The 1st issue on Compartmentalizing The Price Action, we saw the action down to the 30min chart. And for some of our scalper friends and people trying to figure out the action, says: “Hey Dawg? Why didn’t you look at this in the lower time frames like ticks?” What is…
KEWLTECH: Issue 065 – Compartmentalizing The Price Action
Technical trading is a skill. It isn’t an inherent talent. And like all skills, it can be learned and mastered. One of the skills that you will need to gain is the ability to compartmentalized the price action so that you understand how the long time frames will relate to the short time frames. The…
KEWLTECH: Issue 064 – Consolidation
Areas of consolidation have so much information to provide. Not many people understand how to use them. When people see areas of consolidation, many people make comments like “the market is trying to make up its mind”. Speculative analysis. It isn’t even technical. What do most people do with such speculative analysis, they generally say…
KEWLTECH: Issue 063 – Price Action And Legs
I’ve covered some basics in the last few blog entries. In this entry, I want to highlight some key points before moving further. It is amazing however, how people just want to make things more complex than what they really are. Some people think they can learn more than one thing at once. It isn’t…
KEWLTECH: Issue 062 – Market Does What It Does
Earlier today a trader was commenting about the tragedy in Japan. While all that unfolding over there is not something to joke about, it is also sad that this trader was trying desperately to relate what is happening there to the market. After the market hit 1251 early today, he remarked how can the market…
KEWLTECH: Issue 061 – Going Down The Leg
When you’re going down the leg there is nothing to look at but the leg that took you up. The leg up has interesting levels in between. This 1600tk chart describes the leg that took us to the previous high. There has been distribution. We sell and bounce at 27.5, now in order to change…
KEWLTECH: Issue 060 – Impaired Trading
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…
KEWLTECH: Issue 059 – Levels in Context Part 1
Determining the levels of interest seems to be a tough thing to do. Not so tough when the action is moving as the result of the completion of the accumulation or distribution setup, but tough on some during the start during the sideways movement of the process of accumulation and distribution. Many people consider these sideways…