Let the Market Talk
Most technical analyst beginners, and probably a few experienced ones as well, look at a chart with preconceived notions about what the market will do. This usually narrows the analysis and often provides incorrect results. The theme for this section is, ’“you cannot impose your will on the market.” The market will always tell you what it is doing. The secret of technical analysis is to wait for the market to talk before trading and continue to listen in case it changes its mind.
Some charts, like those of the major stock markets, seem to travel up or down for long periods of time. Finding the trend there is easy.
Figure 20.3 shows the long trend in the U.S. stock market interrupted in 1994 by a well-defined ...