Technical analyst. What a load of hocus pocus. One can draw trend lines anywhere, or at least that’s what I get told by many tweeters.
A horse is given blinkers to ensure they remain focused, peripheral vision basically so that they don’t run off course. The same applies to trading.
But focus is key along with a good eye and those simple trend lines can turn into magic. I get asked all the time, why use this point or that point and the simple answer is experience. Experience of understanding price and indicators. But here’s the kicker, drawing magic is one thing, trading magic is another.
I confess the latter is a bigger art than the first.
Today I told our members that charting is our GPS, I’m their GPS. Like any good roadmap the simplest route is always the cleanest. Avoid the traffic, never steer off route and keep those god damn blinkers on just like they use on horses.
2017 was the biggest fuck job ever. Nothing worked other then blindly buying and sitting on tight ranges. Our markets were hijacked by machines and the central bankers fed them even more. Every bear spanked and spanked some more. It was brutal.
Fortunately 2018 has finally brought back our markets and we find ourselves with heightened levels of volatility just like the good old Bernanke days (i miss him btw) 🙂
But look, the hocus pocus that many knock is working a bloody treat and if we stay focused and follow our GPS then the Ka-Ching can ring.
I jest on Twitter about how fabulous I am but I confess I too can veer off course. Trading is hard god dammit, really hard, BUT one must stay blinkered. And yes simple trend lines work, so long as your navigator is me (haha) #Joking.
I follow the Keep it Simple Stupid method, because after all, we’re all a little stupid right?!
But my very simple roadmaps have been just stupid, stupid on the perfect front. The purpose of this post is to highlight the power of the Hocus, Pocus, Focus as a lesson to us all.
Large bear flag call for a new high from 2730 to 2800 then tumble.
And tumble it did right down to 2596 from 2800:
Clearly a journey has loops and turns and my technicals then suggested this roadmap involving a large bounce first, before a further thumping:
Here came the bounce:
And then the thumping:
Keep It Simple Stupid!!!
What happens next? Depends on what my next GPS route tells me 🙂
But like I said trading is hard and focus is an art but the SIMPLE route is always the cleanest.
I always try to turn up during key market turns and I hope that my ‘stupid’ approach helps.
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