I have completed the babypips education on this website. I enjoyed the course - it is well written. Thanks!
I now have a reasonable understanding of technical analysis. The focus of my learning now is fundamental analysis & sentiment analysis. I see sentiment analysis as a part of fundamental analysis - sentiment being one of many fundamentals. Maybe this is because I don’t understand them very well…
I ask myself - Do I understand what causes the underlying long term direction of travel? My current answer is no. I know that there is no exact formula for accurate prediction, and experts argue about it.
There is an internet full of data and opinions. Some websites claim to show sentiment in the form of heat maps.
If anyone has found any useful info to descriminate between useful info and the chaff - I would appreciate a link.
Yeah, as a day-trader / short-term trader I don’t have much use for fundamental analysis. Everything about FA is too long term to be of much use. It’s a different story if you’re lookimg for stocks to invest in, obviously.
I totally agree, to succeed we must have this attitude - wait for opportunities.
Unfortunately, many new traders seem to be persuaded by cleverly compiled Youtube clips using historical charts, that a great trader looks at any chart at any moment and finds an opportunity to buy or sell urgently, before even another single bar has printed. This is regarded as very clever, highly skilful stuff, and because every chart at every minute seems to yield a trade, then that is the way to a fortune…
This is a perversion of TA and just cements the myth of the all-conquering entry signal.
It’s only natural really
even when one looks at a chart for the first time how perculiar it is ,it’s human nature to complicate things and look for answers
It’s ORDER FLOW that causes price action movement. My aim is to seek opportunities where buyers and sellers are likely to make a decision, such as a supply and demand or support and resistance zone.
As such, winning traders do NOT have to take profit, but the majority of losing traders either get stopped out or cut their losses. Hence spikes of movement when trades are closed.
For example in an upward trend and reaching a decision point, a selling spree will move the price down where new buyers are waiting and some winning pro traders would increase their positions.
Which you would realise that traders are testing the resistance zone until it breakouts one way or another. IMO, it is more likely that the trend would continue, until winning traders are in agreement to take their profits, maybe when huge economic activity is occurring or likely to occur. .