The early price records were translated in graphical representations. Hence the birth of Price charts. Moving forward, different formats were introduced BARchart, CANDLEstick, Point & Figure,Kagi, Renko, and the list goes on.
Later some creative persons introduced Moving Averages and came different types of calculations for Moving averages into the charting software.
The next level saw "indicators" included in the charting software.
With all the "gadget tools" ... what are we suppose to do ... and use ? Or what are we trying to do or NOT to do?
What is or are the ROLES of the indicators? How do they complement price?
What does the indicators suppose to do and what do they conclude or imply?
Bottom line is whatever the indicators derived analysis or implied analytical conclusions, the price will be the ultimate CONFIRMATION.
There are many points to consider since we do not live a perfect ideal world. All textbook materials will write about divergence and divergence and divergence
Know when divergence works and when they don't work.
Under what conditions DIVERGENCE fail to function properly??
If one can identify and isolate the high probable conditions or probability it won't function accurately, than I say you have nearly solve the biggest hurdle.
No comments:
Post a Comment