At The Close by Danish Kapur
Swing Trading And Market Pace
What do financial markets show? Personally, I don’t
think they show much besides the way the people associated with them are thinking. And that thinking keeps
changing. Sometimes people get fearful and sometimes they
get greedy, which is why markets keep moving, frequently
making swing highs and swing lows.
So financial markets represent the psychology of the
people trading the markets. Everything people have on their
minds is depicted in the form of the price on charts. Like the
saying goes, “Prices discount everything.” All technical
indicators are derived from price. So we can say that all
indicators are based on the psychology of those associated
with the markets.
You just have to take care to limit your loss and profit will take
care of itself. This is what I believe, and one of the methods to
achieve this is to study price using swing charts along with
studying the pace of markets. The study of the pace of the market helps me confirm the turning points in markets.