iCharts Discussions

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Few insights by Sudarshan Sukhani

Market consist of many type of traders. Some traders use technical analysis, not all. Out of those who use TA, many use indicators, patterns of different types, not related to levels. Finally, some traders use chart levels for trading. Each of these traders can use levels in different ways. Example: The daily pivot calculated with pivot numbers can be used as a dividing line by traders. If the stock remains above the line for the first fifteen minutes, then the trend for the day is up. Some other traders will say: if I get an MACD buy while price is above the daily pivot, I will take it, otherwise not. There can be any number of methods to use the same numbers, with each method a valid idea. The key is not the level or the chart. The key is your understanding of the market trend, momentum, management of risk and position sizing. Therefore, the same tools are used differently by different hands. There is virtually no danger of overuse.