Trade the charts - not the News - Strat

Quote:

Originally Posted by chanak Have to watch this with Shares though as there are sometimes 'lenders' in the market. Some big MMs and Brokers will have a pool of shares waiting to be traded. These shares can be 'lent' to CFD traders or sold to buyers. Are these 'dormant' shares already purchased by the broker or 'lent' on condition of sale by the company issuing the shares? In Forex I would imagine that this wouldn't be the case as it's a Zero-Sum game - two sides to the transaction? Grimweasel... Do we really need to know 'why' a bull bar has appeared on a chart...

Do we really need to know 'why' a bull bar has appeared on a chart though?

Danny boy, your handle should have been “Day Tripper” as your mind seems to wander in and out of focus more times than our first 1953 black and white telly!

As technical traders, we trade our charts using technical analysis of PRICE. Nothing else.

We watch and study PRICE, nothing else, whether it be on a price bar or a candle. There is also a very important time element but because our MT4 charts are “automatic” and logarithmic in scale, we cannot perform time element analysis and studies. In any event, we have enough on our plate trying to follow PRICE!

We do not care or need to know why PRICE did what it did from a funny mentals perspective.

We DO need to know WHO is in CONTROL of that price bar. We DO need to know the MARKET SENTIMENT at all times. We do not need to know the funny mentals of why?

This is ALL we need to know as technical traders.

Let’s do a quick example on USDJPY:

At this point in time, Tuesday, October 06, 2009 at 12:30pm NY time:

Market sentiment is BEARISH

Sellers are still IN CONTROL

Worker and BOSS trend is DOWN

We do not care what caused this to happen or why?

If we did, how would this help us as technical traders?

The danger of “knowing” this or “listening to the talking heads” is that on your sub conscious level, your thinking, and therefore trading direction, has already been “programmed” into you.

Always keep an OPEN mind

Do NOT marry your trades – be ready to DUMP her as soon as she gets “grumpy”