This is one of my favorite topics lately. My trade room got into a pretty big discussion about it this morning and then it came up in a separate chat so I need to address it today.
Any analysis that requires prediction is wrong. Sorry. I do it. I have done it. And I have had that uneasy, gonna puke feeling every time I’ve done it because it is so meaningless.
What is happening RIGHT NOW? Is price moving up? or down? There are places on charts where we can predict SOMETHING MIGHT HAPPEN THERE but we do not know what. It’s Impossible to ever know that. Trade what you see, not what you want to see and definitely not what you believe.
Here are some more of my thoughts on it:
Have a great day.