T2W Trading Community

Conclusion

Typically, most new traders approach the study of technical analysis with an eye towards identifying a single indicator, system, or trading methodology which, when practiced with precision and discipline, will reap rewards on each and every trade attempt (or at least very nearly so). Many traders, especially beginners, in their unending search for this one and only ultimate trading tool, tend to look at this discipline as having such potential . . . as containing the possibility of being the long sought-after magic key which unlocks the hidden secrets of future market direction. It is important that we not regard ANY technical trading tool in this light. Instead, they are better regarded merely as an aid in summarizing and simplifying certain discretionary aspects of our trading routine. Technical analysis gives an indication of what has happened on a fairly consistent basis in the past, but it make no guarantees of the future.

The techniques discussed in this article will jumpstart your understanding and interpretation of price behavior and underlying market intent, but don't expect them to become your Holy Grail. It is very likely that it may take a great deal of practice before you can comfortably integrate them into your normal trading routine. Some will be more effective under certain market conditions than others. Plan on spending considerable time with each tool before you start to fully realize its benefits as well as its shortcomings. As with all effective trading tools and techniques, nuance and idiosyncrasy become more apparent with practice.