Seeing Clearly by Melvin E. Dickover
Price charts contain both visible and invisible pieces of information. Today’s technological tools shed light on all the useful clues that charts contain. Find out how they help reveal the cyclic components in price data.
In my June 2015 article, “Understanding Causes Of Market Movements,” I presented a model of market movement (M²M²) that argued that the essential things that we see in a chart such as the support & resistance skeleton and the cyclic moving parts are not visible to the eye. In this article, I’ll show you how the cyclic moving parts can be clearly observed using indicator technology now available. I’ll then use M²M² to explore the consequences of pattern recognition and to shed light on common trading setups and practices. You will learn that a different approach to indicators is needed, that pattern recognition changes dramatically, and that a market technician should focus on something different from what he is accustomed to.
This is your guide to looking inside the black box of a price chart and clearly seeing what lies within.