Our take on the market are totally independent as we always make certain to cover any risks arising from any considerable market condition during the time trade positions are exposed in the market. It provides us a more meaningful insight as how prices reacts and would subsequently react to the next market catalyst.
Anticipating both sides of the directional trend rather than simply speculating and identifying supports & resistances can be well worth factoring a higher probability of a market potential in the making. The study of price action and sequence of identified similar patterns can be quite helpful even without any technical indicators. And applies them as a guide only when it is necessary. This is true especially for traders who uses price action analysis as the primary preference over lagging technical indicators. It really is a matter of market perspective and approach that works well with each self-directed trading investor/ trader.
The effectiveness & relative importance of trading by correlation would provide an assessment that can support one with the other and carries a much higher probability of the analysis and price objective accuracy. Although, it is a longer process and takes time to do so, but as the end result simply justifies the due diligence made during the process. Technical approach combined with 'Price Action Analysis' and narrative information as described herein can well support trade positions even within a volatile market
Reference Link: Price Action Analysis Defined
The market story continues even after a trade position has been executed either as an entry or a trade settlement. More importantly no matter how often changes in reports emerges, these can best be taken into account what the market's potential is on a specific instrument or stock, especially when trade positions are on the right side of the market. At times, reports that are repeatedly to be in the limelight would provide significant weight thus influencing price movement.
Volumes and momentum that continuously supports fundamentally-driven markets can remain in a longer state, as prevailing sentiments are the main drivers of the market. Until such time, a fresh catalyst could emerge and becomes a game-changer that does a total round about from an established trend.
The importance of narrative information should be put into practice more than simply trading the financial markets mostly on a technical stand point. Although, they do provide assistance for traders to determine certain price parameters, and technical market signals most of the time. But changes in narratives would hardly fit into an equation when it emerges unexpectedly.
On our part, it's our responsibility to be able to monetize and translate our trade analysis into the right trade position and have the best probable bottom line end results. For as long as we can adapt to market conditions, we do have a greater probability to achieve this.
Likewise, it helps to know how investing & trading by correlation provide a cushion to preserve and enhances the value of every investors portfolio. Rebalancing assets whenever it is called for is a must, especially considering the type of market conditions the global economies are facing.
" Investors & traders are wired considerably different, Stay Connected with the Market's Grid is relatively important." ©