TRADERS EDGE

One aspect that often gets neglected when carrying out technical analysis is location. New traders often get caught up in what candlestick pattern is forming and completely lose sight of the overall context and what the wider price action is telling them.

A large part of price movement is driven by people interacting with the market, their emotions are built into their decision making and therefore we need to add this dimension to our analysis and learn how to capitalise on it.

Swing points in the market make strong areas to look out for future potential trades, simply because they attract so much attention. At Traders Edge focus on the really obvious key swings like the one highlighted in the chart below.