Re: how to understand the reliability of a bull candle? Quote:
Originally Posted by dotcom i thought there would be some form of reliable prediction, not just some randomness. It kind of seems like the theory of probability. It's hard to accept that the market is completely random. Is their not some fixed set up? some way of sure prediction, other than its bad habits?
after i asked this question, i started reading more on charts, so far i only know what each candles mean. But have yet to understand how to predict the next move. What does last weeks ups and downs have to do with predicting today's moves? (i think i get it now) is it just a manipulation? if things are based on fundamentals, why not just give good word and keep things up? |
I gather from your writing that English is not your first language but I think you are asking why you cannot predict the future from past candle formations ?
The honest answer is that if "we" knew, how to do that, we would all be rich.
The past is no guarantee of the future. We see a candle shape (pick one) and guess a direction. Sometimes it works; sometimes not : Hence stop losses.
Add psychology, favoured approaches, various technical approaches, variance of opinion among traders, lultz, con artists, and you will realise that trading is not something you pick up by osmosis but by actually doing and moulding yourself to a trading approach. This is only a portion of why candles or pitchforks do not make everyone rich but at this point I have lost interest and need some food.
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neil
....They used a 'Stop Loss'- a protection from the Black Swan. Rarely practised by many traders.
(Nassim Taleb "Fooled by Randomness."
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