Why focus on reversals? Aren't reversals more dangerous to trade than following the trend?
Sure, you can make that argument...but there is another side to the coin.
1. It takes a while to establish a trend. By the time you can validate that a market movement is a viable trend, it may be a little late in the game to get in.
2. One of the few market truths is that market can't go in a straight line forever...They must turn. Thus, reversal are an inherent factor of the market which occur on a regular basis. This regularity offers a steady sampling of trade setups.
3. With competent TLA (Transaction Level Analysis) software, you can peak inside the guts of a trend to see if the program trades that created the trend are still in play. Having this insight in real-time can add dramatically to your trading results.
Completing this circle in real-time, we are in a market that goes up 200+ one day and down 400 the next day...is Technical Analysis ready to assist you with this kind of volatility?
Sure, you can make that argument...but there is another side to the coin.
1. It takes a while to establish a trend. By the time you can validate that a market movement is a viable trend, it may be a little late in the game to get in.
2. One of the few market truths is that market can't go in a straight line forever...They must turn. Thus, reversal are an inherent factor of the market which occur on a regular basis. This regularity offers a steady sampling of trade setups.
3. With competent TLA (Transaction Level Analysis) software, you can peak inside the guts of a trend to see if the program trades that created the trend are still in play. Having this insight in real-time can add dramatically to your trading results.
Completing this circle in real-time, we are in a market that goes up 200+ one day and down 400 the next day...is Technical Analysis ready to assist you with this kind of volatility?
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