Human are driven by emotion making both RATIONAL and IRRATIONAL decision with and without facts/data.
Irrespective whether it is financial matters or NOT, we as human CANNOT escape the flaws of our our mindset as we are MENTALLY design as such..
We are wired in a manner that we only CHOOSE and WANT to hear what we have decided.
We only want to see what our minds have established.
This is how we all end up classifying "RIGHT" or "WRONG". Over time things evolve and what is RIGHT today can be wrong in the future and what is WRONG today can be right in the future.
As human, we desire and yearn for PERFECTION when comes to financial matters. After all, who don't want money as a mean to an end to pay our expenses/bills.
As I walk my path in the financial cycles, I develop small and simple systems, tweaking the systems and parameters VERY FREQUENTLY in my first 10 years, filtering sets of parameters that fit best.
The 10 -20 years was refining the system and narrowing the parameters into VERSATILE system that can be applicable across all time frames (both intra-day and non-intra day) for ALL traded products.
During this period, I started to observe in details the relationship between different directional trends intensity (strong, neutral and weak) versus the selected indicators that I use on the charts.
Interestingly, there are common and obvious relationship between PRICE trend and indicators changes. What does it mean when the relationship is positively correlated or negatively correlated? What are the significant interpretation of trend in all this information?
The market is NOT a LINEAR straight line, therefore you will NEVER have one set of rule to analyze the price trend indicator relationship.
There is a START stage, a GROWTH phase and MATURING/ENDING part. This is straight simple. It is the different price trend intensity/velocity/momentum that is a bit more challenging and need a lot more patience to analyze and correlate while developing the strategies as it evolve.
This different intensity/velocity/momentum. This dynamic movement is NOT a straight line in ONE direction before it REVERSE and changes, make any inexperienced and amateur seeing the market as RANDOM and Haphazard movements.
The well seasoned ones knows this is DYNAMIC trend of different intensity in ONE major direction with speed bumps along the way until it ends at the final price!
The truth is many comes expecting a straight line and caught unexpected that it is a winding road with speed bumps and temporary retreats.
In a simple analogy, this market has "LIFE" and it has different pulse beats over time depending on the emotional/behavioral state.
How we internally react to the external will decide our OUTCOME!
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