Chapter 12: Targets, Contrary Indicators, Roundophobia and Psychological Levels
What we will cover in this chapter
- No one knows with certainty where the market is likely to trade tomorrow, next week, next month or next year.
- We have no control over where the market is likely to trade, regardless of how strongly we feel about it.
- Provided we accept these limitations we can gain clues as to potential moves by looking at how much confidence other people express in their forecasts.
- This is generally a better indication of how they have invested their own money rather than where prices are most likely to go.
- Roundophobia refers to the tendency of markets to at least pause in the region of round numbers. These areas represent psychological ...