Signature of perfectionist buyers to trade a small rebound
For those who still wonder by what miracle chart analysis can work well, here's a proof:
Such proofs, I often see and they are an integral part of my publications, but I had not yet had the idea to dedicate a small Tutorial, and this proof is perfect for its simplicity and its obvious!
It is simply a question of proving that Chartism is neither a science nor divination or pure chance.
In technical analysis , there is especially a strong psychological dimension to study, interpret, and try to anticipate or at least use to his advantage.
This proof is an ascending channel that is anything but the product of hazard: a whale (market maker) or a set of individuals (I did not check the order book because it doesn't matter) traced a bullish trend resistant between the two recent peaks as you can see in white on my graph, then reported a parallel (you have the dedicated tool "Parallel Channel" to do the same in Tradingview), adjusted on the bottom of my graph: and he has (they have) placed their (their) purchase order very exactly on this parallel during the dump of the Rising Wedge of my previous publication (here in dashed for reminder), which also coincides with the expected target of this pattern of reversal (return bearish to the base of the wedge ).
The perfection of the pattern with this rebound leaves no room for doubt: it was not the result of chance, which gave the opportunity to anticipate and enjoy it with the interesting probability that there is a greater number of Long trades on the same simple track as on a direct continuation of the dump without rebound.
Such proofs, I often see and they are an integral part of my publications, but I had not yet had the idea to dedicate a small Tutorial, and this proof is perfect for its simplicity and its obvious!
It is simply a question of proving that Chartism is neither a science nor divination or pure chance.
In technical analysis , there is especially a strong psychological dimension to study, interpret, and try to anticipate or at least use to his advantage.
This proof is an ascending channel that is anything but the product of hazard: a whale (market maker) or a set of individuals (I did not check the order book because it doesn't matter) traced a bullish trend resistant between the two recent peaks as you can see in white on my graph, then reported a parallel (you have the dedicated tool "Parallel Channel" to do the same in Tradingview), adjusted on the bottom of my graph: and he has (they have) placed their (their) purchase order very exactly on this parallel during the dump of the Rising Wedge of my previous publication (here in dashed for reminder), which also coincides with the expected target of this pattern of reversal (return bearish to the base of the wedge ).
The perfection of the pattern with this rebound leaves no room for doubt: it was not the result of chance, which gave the opportunity to anticipate and enjoy it with the interesting probability that there is a greater number of Long trades on the same simple track as on a direct continuation of the dump without rebound.
Comment:
Here is the same signature of perfectionist buyers (certainly simultaneous of numerous buyers) on the drawing of the bearish channel starting from the two high points and the first low point with a parallel line, marking a rebound that could be anticipated in the channel:
