The Wolf Den #462 - Technical Analysis Is Not A Crystal Ball
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. We are working through the logistics of cancelling paid members, so thanks for your patience. All of you who canceled and unsubscribed yesterday have been manually added back as free subscribers! You can always go back to any old paid issue and manage the subscription at the bottom. Sorry for the headaches, although they are not my fault and I am trying to give everyone something for free.Technical analysis is not a crystal ball. It is merely a risk management tool.Far too many traders view technical analysis as an effective predictor of future events. They believe that they can see what is going to happen based on a few lines and candles on a chart. If this was the case, all technical analysts would agree on every chart pattern and all traders would be extremely wealthy with a strike rate of 100%. The reality is, you can show a chart to 100 traders and get 100 different interpretations of where price is headed. In that regard, it is a pseudo science at best and you should be wary of any trader who speaks in absolutes about what is going to happen. They’re trying to sell you something or are emotionally attached to their idea and are working as hard to convince themselves as they are to convince you.A chart is merely an illustration of the emotions of the market's participants. Are they fearful? Are they greedy? At what point is the pendulum likely to swing between these two poles? That’s what we are looking to identify.So what is the purpose of looking at a chart at all?A chart is a risk management tool and a way to approach a trade with a definitive plan. This includes where to enter a trade, where to exit in profit and where to set a stop loss at the invalidation point of my idea. Without a chart, managing risk becomes far more difficult, even if all of the lines, patterns and indicators are completely meaningless. At least the chart gives us actionable information. This is why I always say that your method of identifying trades is unimportant. You can use RSI, OBV, supply and demand, support and resistance, tea leaves or a magic 8 ball - it’s the way you use that method to manage your risk that matters, which is where the chart comes into play.CHARTS CANNOT TELL YOU WHAT IS GOING TO HAPPEN IN THE FUTURE!In This Issue:Technical Analysis Is Not A Crystal BallBitcoin Thoughts And AnalysisAltcoin ChartsIndia Will Not Count LossesBored Ape DJ Duo Signs With WMEGoldman Sachs Executes First OTC Options TradeThe Wolf Of All Streets Podcast Ft. Ari MeilichMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #462 - Technical Analysis Is Not A Crystal Ball
The Wolf Den #462 - Technical Analysis Is Not…
The Wolf Den #462 - Technical Analysis Is Not A Crystal Ball
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. We are working through the logistics of cancelling paid members, so thanks for your patience. All of you who canceled and unsubscribed yesterday have been manually added back as free subscribers! You can always go back to any old paid issue and manage the subscription at the bottom. Sorry for the headaches, although they are not my fault and I am trying to give everyone something for free.Technical analysis is not a crystal ball. It is merely a risk management tool.Far too many traders view technical analysis as an effective predictor of future events. They believe that they can see what is going to happen based on a few lines and candles on a chart. If this was the case, all technical analysts would agree on every chart pattern and all traders would be extremely wealthy with a strike rate of 100%. The reality is, you can show a chart to 100 traders and get 100 different interpretations of where price is headed. In that regard, it is a pseudo science at best and you should be wary of any trader who speaks in absolutes about what is going to happen. They’re trying to sell you something or are emotionally attached to their idea and are working as hard to convince themselves as they are to convince you.A chart is merely an illustration of the emotions of the market's participants. Are they fearful? Are they greedy? At what point is the pendulum likely to swing between these two poles? That’s what we are looking to identify.So what is the purpose of looking at a chart at all?A chart is a risk management tool and a way to approach a trade with a definitive plan. This includes where to enter a trade, where to exit in profit and where to set a stop loss at the invalidation point of my idea. Without a chart, managing risk becomes far more difficult, even if all of the lines, patterns and indicators are completely meaningless. At least the chart gives us actionable information. This is why I always say that your method of identifying trades is unimportant. You can use RSI, OBV, supply and demand, support and resistance, tea leaves or a magic 8 ball - it’s the way you use that method to manage your risk that matters, which is where the chart comes into play.CHARTS CANNOT TELL YOU WHAT IS GOING TO HAPPEN IN THE FUTURE!In This Issue:Technical Analysis Is Not A Crystal BallBitcoin Thoughts And AnalysisAltcoin ChartsIndia Will Not Count LossesBored Ape DJ Duo Signs With WMEGoldman Sachs Executes First OTC Options TradeThe Wolf Of All Streets Podcast Ft. Ari MeilichMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO