I've been trading securities and crypto for over two years. I know this doesn't seem long, and to be honest it's truly not, but I have found my way through simplicity in technical analysis. Knowing a few key things will make your trading life so much better...
Charts can be scrutinized to the max with massive drawings, indicators and equations but to be frank. The chart depends on one thing, human psychology.
Human psychology is the only thing that never changes, this creates patterns that we all understand. Fundamentally, it doesn't matter if you remember plays if you know how the human works...
Our eyes follow the chart. We see green were happy, we see red, were not... But what if you didn't look at the colours and instead looked at the lines that connect them... We need to know two things... How volume affects price action, how volume is affected by news, and how supports and resistance levels are just our brain estimating average peaks and valleys over time.. try looking at your chart like this. Understand supports and resistance. If you do this, you'll never have a bad entry or exit.
Charts can be scrutinized to the max with massive drawings, indicators and equations but to be frank. The chart depends on one thing, human psychology.
Human psychology is the only thing that never changes, this creates patterns that we all understand. Fundamentally, it doesn't matter if you remember plays if you know how the human works...
Our eyes follow the chart. We see green were happy, we see red, were not... But what if you didn't look at the colours and instead looked at the lines that connect them... We need to know two things... How volume affects price action, how volume is affected by news, and how supports and resistance levels are just our brain estimating average peaks and valleys over time.. try looking at your chart like this. Understand supports and resistance. If you do this, you'll never have a bad entry or exit.