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by llelouch
1055 days ago
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The proper way to study charts is to look at price action only. Moving averages, RSI and the like are all lagging indicators. The trade is already over by the time the signal hits. Actual TA is based on human psychology. Imagine a lot of people are buying at $1 and price pumps and then drops. Now imagine the price moving towards the $1 again. There is a high probability (not certainty) that price rejects that price point. There will be people who want to get out at breakeven because they didn't have stop losses. |
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