Most technical indicators are lagging, which means they are slow. They tell you what just happened ... after the fact. However, by combining historic price action with predictive price patterns, we’ll have enough evidence to form the basis of a trade plan.
In this chapter, you will learn how to use technical analysis to read your charts. It is critically important to learn these concepts well. They are key to understanding the market’s behavior. The technical indicators we’ll discuss do not control the market, but they describe a story of how traders are trading it.