It is best to trade liquid markets , e.g ESmini, here it is impossible for a single institutions or a group to manipulate the market to a large extent. Same applies to liquid shares. Better still if their trading activity data is available via volume.
Then the footprints of the big operators can be detected via price shift and volume. This is the fundamental law of supply and demand which govern any market. Learning to judge the market by its own action via price/vol is a skill and like any other skill there are no shortcuts. The best source of learning is Wyckoff principles . He outlined them 100yrs before and they will continue to operate as long as there are markets.
Most traders resort to employing countless indicators to forecast prices, they are useful tools to make trading decisions but have limitations.
If you step back and enquire you will realise the fundamental flaw.
Any maths based indicator uses price in its calculation. Now price "A" is a variable, this is sliced and diced to arrive at an indicator value say of RSI or MaCD "X" , since it is dependent on A, it is also a variable.
We then look to forcast using this variable "X" to forecast variable "A"
Hope the inconsistent logic is evident, anyway dwell on it.
There is inherent certainty in the market. whereas our brains are hard wired to seek certainty and cannot operate from a probabilistic as casinos do (not the punters - they are the losers, the casinos win- not because of cheating(highly regulated now in places like Vegas, London and Europe) but playing the odds)
Until this truth dawns on the trader, 90% in this business will fail.
Then the footprints of the big operators can be detected via price shift and volume. This is the fundamental law of supply and demand which govern any market. Learning to judge the market by its own action via price/vol is a skill and like any other skill there are no shortcuts. The best source of learning is Wyckoff principles . He outlined them 100yrs before and they will continue to operate as long as there are markets.
Most traders resort to employing countless indicators to forecast prices, they are useful tools to make trading decisions but have limitations.
If you step back and enquire you will realise the fundamental flaw.
Any maths based indicator uses price in its calculation. Now price "A" is a variable, this is sliced and diced to arrive at an indicator value say of RSI or MaCD "X" , since it is dependent on A, it is also a variable.
We then look to forcast using this variable "X" to forecast variable "A"
Hope the inconsistent logic is evident, anyway dwell on it.
There is inherent certainty in the market. whereas our brains are hard wired to seek certainty and cannot operate from a probabilistic as casinos do (not the punters - they are the losers, the casinos win- not because of cheating(highly regulated now in places like Vegas, London and Europe) but playing the odds)
Until this truth dawns on the trader, 90% in this business will fail.