| IN555 - 4/29/2024 08:12
A chart is the fact about the past, absolutely has zero fact about the future just like guessing a fundamental reason. Last summer shows the example well of how weather rules and always will and when it rained it wasnt a ship already turning that we couldn't see, it was a dam breaking lose.
Hi IN555,
Yep. I agree. The chart is in the past. So let's expand on this a bit. If I take a rubber band, and I stretch it and connect to a trigger mechanism and I walk away from it for a week, a month, a year, or a century, that rubber band stretch happened in the past..right? That rubber band has "X" amount of energy stored within it - it was stored when it was stretched, right? Now since it (the chart) is in the past, is it no longer relative to the present? If it's no longer relative to the present, then if the trigger mechanism is let loose, then the rubber band will just what - stay there in mid air and fall harmlessly to the floor? Or will it release its stored energy? Of course it will release it's energy. Our country has nuclear weapons, lots of them. Alot of them were built decades ago. They are essentially stored energy. Do you think that if they were used today, that they would not release their energy because they are from the past? That is how charts work - albeit in multiple dimensions which makes them seem chaotic. And what is weather exactly? Isn't it energy being stored and released just like the rubber band, only on a global scale? And what controls everything known today? The laws of physics control everything around us. The lights you see, the stars in the sky, your truck starting, and stopping at the stop sign, even every breath you take is rooted in laws of physics. The minute they break down, our world as we know it ends. The weather and the price charts are no different at their very core.
So let's take this to a chart for second. Let's say you got a trendline - some trendline from somewhere and price was able to penetrate that trendline. What just happened? What really just happened? If you listen to whomever writes newsletters or your broker, he will tell you that the market is bullish or bearish because it just broke the trendline. When in reality price, either it just exhibited more strength, or more weakness (depending on the context) and thus is that ship reacting in a certain way. That TL break is synonymous with the ship turning and its bow heading in another direction, even though the mass of the ship continues in the original direction - just like the market where price did something it hadn't done before but then appears to continue on the course from the past. That could have happened a week before, a month before, even a decade before, and be still be relative to the goings on in the future. IMHO, disregarding something that happened in the past as not being relative is a huge mistake and where people go astray. There is never an accident on a price chart. It happened because it had to happen, it is not random and not chaotic. It has meaning for the future - even if it occurred in the past.
Good chatting with you. Take care
Edited by NEIAAG 4/29/2024 09:06
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At what point does managed money get nervous?
