Usually my week-ends are spent in reading 'popular' blogs & websites related to Stock or Fx trading which I bookmark and leave for coming week-ends.
My recent readings are on Nial Fuller's learn to trade the market
Although one cannot agree in toto with anyone else's writings/observations/findings, these articles do crystalize the issues faced by traders and one cannot but appreciate them for highlighting those issues, if not anwering them fully.( who else -- other than ones own self -- can sort out ones issues ??)
In one of the articles The Simplest Forex Trading Strategy in the World http://www.learntotradethemarket.com/forex-trading-strategies/simplest-forex-trading-strategy-in-the-world
while emphasizing horizontal price levels, he writes:
While reading this I couldnot help recalling yesterday's event and price-action in INFY.
.png)
Going by Fuller's logic, we should have got Infy in 2827-2838 zone on Thursday EOD, but Thursday saw us going above this all important zone with a gap-up --- which, if seen with only price-action point of view, should have seen Infy zooming upside after the 'event'.
And that does put a question mark on Fuller's arguments of ignoring 'complex' TA like EW,Gann, EMAs, Stochastics, MACD, RSI etc etc and concentrating 'only' on price-action and horizontal supports/resistances.
However, one cannot totally reject Fuller's horizontal supports & resistances as yesterday's Nifty action was something that could be very well explained by it. I had asked my "Technical Analysis" group members about the importance of 5544 as it was acting like a wall yesterday. One of most logical answer was 5DMA=5544 by Parveen Mundlia but seen from Fuller's eyes it could be as follows(5544 was previous day's low):
.png)
In the same breath, though, I would illustrate the strength of Trendline by following chart wherein on breaking of horizontal support of 5548, TL provided it:
.png)
To conclude, I wish to emphasize that this post of mine is not to say that TLs are better than Horizontal supports/resistances or any other level arrived at by Fib/Gann calculations. But I do wish to emphasize that study of Charts only for price-action and with horizontal res/supp levels but without momentum and volume indicaters is like attempting to cross a river only by measuring water-current's speed but ignoring its depth.
And as far as complexity is concerned, I think it has to do more with familiarity.
As one becomes familiar, complexity gets converted into simplicity.
My recent readings are on Nial Fuller's learn to trade the market
Although one cannot agree in toto with anyone else's writings/observations/findings, these articles do crystalize the issues faced by traders and one cannot but appreciate them for highlighting those issues, if not anwering them fully.( who else -- other than ones own self -- can sort out ones issues ??)
In one of the articles The Simplest Forex Trading Strategy in the World http://www.learntotradethemarket.com/forex-trading-strategies/simplest-forex-trading-strategy-in-the-world
while emphasizing horizontal price levels, he writes:
While reading this I couldnot help recalling yesterday's event and price-action in INFY.
.png)
Going by Fuller's logic, we should have got Infy in 2827-2838 zone on Thursday EOD, but Thursday saw us going above this all important zone with a gap-up --- which, if seen with only price-action point of view, should have seen Infy zooming upside after the 'event'.
And that does put a question mark on Fuller's arguments of ignoring 'complex' TA like EW,Gann, EMAs, Stochastics, MACD, RSI etc etc and concentrating 'only' on price-action and horizontal supports/resistances.
However, one cannot totally reject Fuller's horizontal supports & resistances as yesterday's Nifty action was something that could be very well explained by it. I had asked my "Technical Analysis" group members about the importance of 5544 as it was acting like a wall yesterday. One of most logical answer was 5DMA=5544 by Parveen Mundlia but seen from Fuller's eyes it could be as follows(5544 was previous day's low):
.png)
In the same breath, though, I would illustrate the strength of Trendline by following chart wherein on breaking of horizontal support of 5548, TL provided it:
.png)
To conclude, I wish to emphasize that this post of mine is not to say that TLs are better than Horizontal supports/resistances or any other level arrived at by Fib/Gann calculations. But I do wish to emphasize that study of Charts only for price-action and with horizontal res/supp levels but without momentum and volume indicaters is like attempting to cross a river only by measuring water-current's speed but ignoring its depth.
And as far as complexity is concerned, I think it has to do more with familiarity.
As one becomes familiar, complexity gets converted into simplicity.
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