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Counter Trends
One strategy to look out for to enter a trading position is the counter trend. Counter trends are reverses in a larger pattern – so what we’re looking for is a slight reversal during a long term trend. For example, if the monthly trend is ascending and we suddenly see an hourly descending trend, this […]
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Issues with Patterns and Psychology
First of all, we find patterns in noise. The stock market is primarily just financial noise data, completely random and only punctuated by periods of psychology based trading or algorithms that are mirroring psychology based trading. We need to be conscious of these issues so that we can mitigate the risk that comes along with […]
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Patterns and Psychology of TA
Patterns are wonderfully beautiful configurations of price action that are really visually appealing and easy to recognize and often can result in fantastic trade opportunities. They are are collections of price action that are confined by support and resistance. And what’s very cool and very important is that they represent market psychology. There’s a lot […]