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South Central Iowa | Well put together and a good amount of work; appreciate your effort DP!
I generally agree with most of what you have stated. I think that your basic structure, or classic charting as I like to call it, is the most important and relevant type of charting a person can do.
I disagree with some of the language though. I don't know if it all originates from the same source or what. I don't like when people state that sellers or buyers have "jobs". There are objectives, yes, that people selling or buying believe the price will reach, but to call it a "job" is to act as though they work in concert with one another; they do not.
Most trades are off of recent trend and momentum; break a point and momentum carries us to the next. Do it several times and we have a trend. Retrace part of that trend, perhaps off a longer term point, and then test that low. Fail to reach that low and rebound above our retracement high and we have a pivot and have reversed trend.
In all that, the buyers and sellers are largely the same. Sure, if we get into multi-year or cycle lows or highs, some new speculative interest might arrive, but most buyers and sellers are not unique specimens who only arrive at certain times. There are not sellers with a "job" who fail and new buyers who step in at their failure who were not present before. There is varying amounts of conviction to direction at different moments and for that reason, buying or selling pressure abates. When the pivots are formed, trend and momentum carries us in that other direction. Many of the sellers of before are buyers of now, not failed beings bled dry.
There is not as much mysticism in the chart as is implied by much of the language.
Edited by Conan the Farmer 8/6/2018 04:24
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Back to the basics: Market Structure
