Charts tell you everything. It tells you what happened in the market.
Then you have to make decision what you want to do about it.
You have to make the right prediction based on what happened.
You have to know when things goes unexpected, should you wait or exit!
You have to ADJUST prediction as time goes by.
The most important, see the chart as it develops, IMAGINE the possible shape before it fully developed. Then combine trend analysis, decide which side of the trade you want to choose.
我是越来越相信TA了, 呵呵。 图上写不下了今天, 先看看XLF的图吧。
1. Pattern
1a) M head, 13.09->12.1, 12.1->11.3, strong support stop M head fully finish its power.
1b) H&S bottom, 11.3->11.8, 11.8->12.3. It goes to 12.4, 61.8% retracement.
1c)W bottom, 11.5->11.85, 11.85->12.2. See tomorrow, 12.2 will meet down trend line.
12.2 is 50% fib line. So rebound will stop around 12.2. If there are rebound.
2. Support Line
2S as support line, already touched 3 times, today, it touched another 2 times. I was hoping it drop to 11.3 for real support, but market just tell me different story. Ok, 5 times, 11.5.
3R. Down trend resistance.
As stated in 1c), this line MUST hold for down trend to continue!.
4F. Fib grid. See how fib grid serve as SR in the past 4 days!
5. Bottom of the gap
5a, 5b are bottom of the gap as support line. See how it affect sharp sell of?
Gap as SR are very very powerful.
6N. Negative divergence, plus strong support, plus possible W shape! You know what odds favors.
7. kiss of the trend line.
See how it rebound to previous trend line, kiss the good bye?
I shorted there today. Yeah! I didn't take profit, as I was waiting for 11.3. Also, failed to see 6N is forming! Well, at least got a free buffet.
Study the SPY chart also, see how TA works on that chart as well.
