09/01/2019/11:00CET
It is a fake correlation when TA spots a breakout this acurately! Take a look at the chart analysis in the previous post and you will see I did not tweek the lines to match at all.
- It is rare, no, totally coincidental to see such a correlation in TA. It is pure chance. I would not dare to toot my horn and predict this breakout with such accuracy.
- But it is undeniable that others are doing TA as well, and when enough people draw the same lines, there exist all the precursors for a herd mentality to kick in.
- We do TA as much for this effect as we do in trying to clinically predict market behaviour.
- Anyone who bought on the end of this wedge is sitting on 3% at the moment,...
- But I am still of the mind that this is a whale splash.
- I am taking this as a short rally to sell into at the moment. The odds are this will come back down.
As always guys, leave comments, have fun and trade safe.