Now you too can be a technical analyst
In this short communication I will try to outline a simple method of carrying out technical analysis that is accessible to anyone. The power of the method is in its simplicity.
There is a resistance level some 2% above from where we are now. Todaywe will either break that resistance or, you guessed it, not break this resistance. If we break this resistance, we'll go up, but if we don't break this resistance, we'll go down. If we go up, there will be another resistance level and if we break it, we'll go up but if we don't break it we'll go down. If we go down, there will be a support level. If the support holds, we'll go up, but if the support doesn't hold, we'll go down. If we go up, we will again retest the resistance level and go either up or down. If we go down, we will retest the next support level and go either up or down. You can continue this analysis for as many steps as you like. The further you take it, the greater chance you will have to overwhelm your audience with your TA skills, but this is strictly optional since the choice of the starting point and the endpoint is purely arbitrary. Even if you pursue my method for 3-4 steps only, you will not come up with different conclusions. When you finish this thoughtful analysis, you'll come up with this profound insight: the market will be moving in a sequence of steps where each step will be either up or down. Now, TA trading is easy, is it not?