Solution for when you get lost in technical analysis
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As time goes by, our technical analysis charts become more and more crowded. Between the short term, medium term, long term, and the lines that are no longer relevant but we keep them (because they could still be used later on; CF pullback and others) etc., or the lines that evolve through the formation of new movements etc., we often get a little lost in our analyses.
A channel resistance line that becomes a primary central channel line. The channel expands.
Candlestick wicks that we do not take into account, but finally we realize afterwards that by passing our line through the end of the wicks the line is more in alignment with the current candles.
Etc.
What can you do?
In my opinion, the easiest solution is to start all over again. Completely reset all your lines. Delete everything, then start again.
If your analysis was good, if it didn't need to be redone from zero, you would normally get exactly the same lines again. Otherwise, you would probably discover that something had been forgotten.
Example:
Here is my original chart for gold:
At the exit from the pink channel, the movements seemed not to follow my analysis.
A little lost due to the latest market movements; I felt something was wrong. So I started all over again, and here is my new chart:
What had I forgotten? A shorter-term and less steeply sloping bearish channel.
Focused on the medium-term bearish channel, I missed this channel, which immediately jumped out at me on a blank chart.
In short: if you are lost, start by deleting all your lines. Then analyse the short term, the medium term, and then the long term (unlike traditional technical analysis where we normally start from the long term to the medium term and finish in the short term). The idea is to detect what could have been forgotten in the short term, because the medium and long term no longer fit very well.
Good analyses to everyone!
A channel resistance line that becomes a primary central channel line. The channel expands.
Candlestick wicks that we do not take into account, but finally we realize afterwards that by passing our line through the end of the wicks the line is more in alignment with the current candles.
Etc.
What can you do?
A simple solution if you are lost in your technical analyses
In my opinion, the easiest solution is to start all over again. Completely reset all your lines. Delete everything, then start again.
If your analysis was good, if it didn't need to be redone from zero, you would normally get exactly the same lines again. Otherwise, you would probably discover that something had been forgotten.
Example:
Here is my original chart for gold:
At the exit from the pink channel, the movements seemed not to follow my analysis.
A little lost due to the latest market movements; I felt something was wrong. So I started all over again, and here is my new chart:
What had I forgotten? A shorter-term and less steeply sloping bearish channel.
Focused on the medium-term bearish channel, I missed this channel, which immediately jumped out at me on a blank chart.
In short: if you are lost, start by deleting all your lines. Then analyse the short term, the medium term, and then the long term (unlike traditional technical analysis where we normally start from the long term to the medium term and finish in the short term). The idea is to detect what could have been forgotten in the short term, because the medium and long term no longer fit very well.
Good analyses to everyone!
