Technical Analysis - The Truth - Part 2
Imagine you are a detective. You arrive on the crime scene and find a body surrounded by blood at the bottom of some stairs.
The suspect says the victim accidently stabbed himself whilst he fell down the stairs. The story seems credible.
However, the Technical Analysis (the data) tells a different story. It shows that the victim was first poisoned. Then stabbed in the back. Then the body was dragged to the bottom of the stairs.
The Technical Analysis showed the fundamentals up for what they were. A story.
The same is true when trading.
Trading is a science. It is not a mystery. And it has nothing to do with fundamentals.
The Technical Analysis (data) shows that sine waves are responsible for the up and down price movement. The price follows the pattern of the sine wave. Not fundamentals.
The price does not move up because Elon Musk likes that particular crypto, or that they have started to burn more crypto than normal, or because Forbes says the Government are now backing that crypto. e.t.c
Just think about it. Light waves, sound waves, gamma waves, brain waves, electricity all travel through sine waves. They all follow the same pattern.
Price movement is no different. It follows the path, pattern and contours of the sine wave. It is the law of physics.
When the sine waves rises, so does the price. When the sine wave falls so does the price.
If you are not trading sine waves you are trading blind.
I hope this helps.
Regards
Jason
The suspect says the victim accidently stabbed himself whilst he fell down the stairs. The story seems credible.
However, the Technical Analysis (the data) tells a different story. It shows that the victim was first poisoned. Then stabbed in the back. Then the body was dragged to the bottom of the stairs.
The Technical Analysis showed the fundamentals up for what they were. A story.
The same is true when trading.
Trading is a science. It is not a mystery. And it has nothing to do with fundamentals.
The Technical Analysis (data) shows that sine waves are responsible for the up and down price movement. The price follows the pattern of the sine wave. Not fundamentals.
The price does not move up because Elon Musk likes that particular crypto, or that they have started to burn more crypto than normal, or because Forbes says the Government are now backing that crypto. e.t.c
Just think about it. Light waves, sound waves, gamma waves, brain waves, electricity all travel through sine waves. They all follow the same pattern.
Price movement is no different. It follows the path, pattern and contours of the sine wave. It is the law of physics.
When the sine waves rises, so does the price. When the sine wave falls so does the price.
If you are not trading sine waves you are trading blind.
I hope this helps.
Regards
Jason
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