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#Reality Market does not know resistances and supports in any form, like MA, pivots, fib, gann, MP,....; Market is only a flow of orders; An order in a terminal has two sides bid - ask; If ask side is taken out rightly without negotiation, it is bullish for that ....
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moment. If bid side is given out rightly without negotiation, it is bearish for that moment. An extending bullish moment has intermediate bearish moments and vice versa. Sometimes bid side orders are way higher than ask side orders. This does not necessarily mean bullish....
moment. If bid side is given out rightly without negotiation, it is bearish for that moment. An extending bullish moment has intermediate bearish moments and vice versa. Sometimes bid side orders are way higher than ask side orders. This does not necessarily mean bullish....
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A big trader who wants to buy will never negotiate. Orders of true bulls predominantly are not on bid side. These are orders that use Market orders to suck the ask price. Same logic goes with true bears.
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A big trader who wants to buy will never negotiate. Orders of true bulls predominantly are not on bid side. These are orders that use Market orders to suck the ask price. Same logic goes with true bears.
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These foot prints are used to create charts which is used to arrive at res and sup in different forms... A derived resistance can truly act as a resistance or can be broken; The reality is it is known only after the action.....
These foot prints are used to create charts which is used to arrive at res and sup in different forms... A derived resistance can truly act as a resistance or can be broken; The reality is it is known only after the action.....
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If resistances behaved as true resistance or support behaves as true supports, the charts will never be in a zig zag manner. At some point these will be broken and no one knows when. All theories can be formulated after all the action is over.....
If resistances behaved as true resistance or support behaves as true supports, the charts will never be in a zig zag manner. At some point these will be broken and no one knows when. All theories can be formulated after all the action is over.....
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This is where historical analysis is significant. If in the past, say a pivot / a MA has acted as resistance, say 75% of times, it means the probability is 75%. Prob of failing is 25%. When this is traded, success matters how much you lose in this 25% of times....
This is where historical analysis is significant. If in the past, say a pivot / a MA has acted as resistance, say 75% of times, it means the probability is 75%. Prob of failing is 25%. When this is traded, success matters how much you lose in this 25% of times....
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and how much you win in the 75% of times. This combination is called expectancy. Average win size X % of wins + Average loss size x % of losses is expectancy. A good strategy should have a positive expectancy and if you trade a positive expectancy strategy perfectly...
and how much you win in the 75% of times. This combination is called expectancy. Average win size X % of wins + Average loss size x % of losses is expectancy. A good strategy should have a positive expectancy and if you trade a positive expectancy strategy perfectly...
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you will know if your results reflect the +ve expectancy only after a series of trades say for weeks or months depending on number of trades.
The crux is this game is a probability game. Your success score is the positive expectancy which requires effort, patience and time.
you will know if your results reflect the +ve expectancy only after a series of trades say for weeks or months depending on number of trades.
The crux is this game is a probability game. Your success score is the positive expectancy which requires effort, patience and time.
