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Home ->The Trading Technicals |
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Ashu Dutt's Trading Technicals |
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Note: The best way to see what "Trading Technicals" is all about is to
read a few previous editions. You can access previous editions of The Chartist's
Almanac if you are registered with ashudutt.com.
Registration with ashudutt.com. is FREE |
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After years of wondering why the markets were doing something different than what
logic or rationale would dictate, it became clear to me that markets will make their
own calls and since humans trade in them, we will remain creatures of habit and
of our behaviours.
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In the long run, the markets must make peace with economics or the real economy.
They don’t need to do this in the short term or the intermediate term. And in the
short term and the intermediate term markets will do all kinds of things that can
only be explained by behaviour and behaviour being repetitive gets well reflected
on charts. Thats why charts may give decent indicators of where markets are headed. |
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Ofcourse, what you have to live with is the analyst’s bias. Different analysts can
read the same charts and make different interpretations of what it means. I do the
same. What I do try to avoid is getting stuck in esoteric technical analysis theories
and stick to reading the parameters that I have found best fit my analysis. |
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