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5 "Tells" that the Stock Markets Are About to Reverse

Get in Synch with the Market, Nadeem Walayat's Trading Lesson's

InvestorEducation / Learn to Trade Oct 31, 2009 - 12:05 AM GMT

By: Nadeem_Walayat

InvestorEducation

In our fast paced computer age of easily placed online stop and limit orders across a multitude of markets has meant that traders like never before have removed themselves from the price action where the focus is invariably on the latest indicator, tool or theory to analyse what will happen next rather than spending time actually watching and imprinting the price action in real time onto ones brain.


Not so long ago market charts had to be drawn by hand, this meant that one was forced to stay focused on the price action as it unraveled before one which generates greater FOCUS for one is more in tune or in synch with the market i.e aware of the changing character of the market which can warn of a significant imminent market moves, instead traders today are immersed in countless indicators that distract them from the market price into a state of confusion as if the phrases of convergence and divergence to the price carry's any real meaning, which is ever only clear in hindsight.

I suggest that if you really want to learn to trade then forget about using the computer generated charts, you need to draw these by hand, add trendlines and support resistance levels and nothing more, do this in real time so the most appropriate time frame would be the hourly chart. Yes this means you only trade one market at a time, but that is how it should be!

As you actually watch and interpret price action for your single market in real time, you will gain new insights into its character and changing behaviour and get in synch with the market, something you will not gain from any indicator, all of which distance one from the unfolding price action by introducing far too much complexity in its interpretation. Example of being in synch with the market.

Source:http://www.marketoracle.co.uk/Article14671.html

By Nadeem Walayat
http://www.marketoracle.co.uk

Copyright © 2005-09 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 400 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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