Professional reading data

Many good traders lose money because of the incompetence in reading data. In the end, markets are a bit more than just a set of numbers and their changes over time. Observing the way in which these numbers interact offers traders a precise method for short-term forecasting. It works because the data stream indicates the intention of the crowd.

Technical analysis does not in itself make you a profitable trader. You must explore the excellent art of reading the data. This may discourage some, given all the time they spent on studying charts and indicators for the study. Of course, you can continue to trade with it, but you do so at your own risk.

Charts often paint pretty pictures that are completely wrong signals, if properly interpreted the data. This brings us to the old observation that you need to sell so that you can see, rather than those which you believe. Once you learn how to read data, it becomes much easier to not reach the false breakthroughs and rapid Facing, which often deceive the other traders.

This is based on the fact that the price and volume provide the most information needed to successfully play the market. The flow of purchases and sales shows the forces that remain hidden in the graphs and flow of news. This reflects the reality of market players, as opposed to the veil of smoke, the proposed public.

Learning to read from a professional not easy, because there is no formula or a classic book on the subject. This can only be studied for a long time personal supervision. But as soon as you will develop your skills in reading, you will have a competitive advantage over other traders, because it gives you access to the hidden pulse of markets.

Below is some of the approaches to studying the secrets of reading the data.

1. Start your education, memorize key levels at your favorite charts. Then, carefully observe the data, when the price is close to the reference point. Write down your observations and see whether you can predict the turn before the crowd would do so.

2. Most of the signals coming from the data helps you to expect the unexpected for the other. For example, Bull trap occurs when, without giving any reasons after the break. Trader carefully read data has the advantage, because it occurs before the turn takes place in the chart.

3. Keep track of the data poglyadyvaya one eye on the clock because the fluctuation tends to occur in predictable cycles. For example, for "Turning to the bar" about 11 minutes at the beginning of the day. Follow the data, in whatever direction the price is not moving at the opening, and then see whether the lost momentum in the critical time.

4. Interpret the level of excitement the crowd, comparing the average value of the current volume of your data. Look for market-based instruments that are traded at significantly high (compared to the average) the volume, because there will be a real force in the course of the day.

5. Look for divergence between the market perception and the flow of data. Are the buyers to maintain prices in the middle of the total sales? Or a growing concern, even when the market moves higher?

6. Look, if the price effect to your expectations. Looking for an opportunity to shop at the top levels of a breakthrough for sales breakthroughs at the levels down. When such opportunities do not, stand aside. Do not wait. Join to immediately when the crowd does not appear near the price points.

7. Market-makers and professionals using knowledge of the location of the warrants, to move in the direction of the market, resulting in the greatest volume. They usually manage emotions crowd against the flow of orders to dislodge the weaker players out of their positions.

9. Use the principle of price discovery. Price discovery is the reference value for the entire trading session. Spend a horizontal line through this point to remind ourselves where it is. Then use breakthroughs up and down through the level of price discovery, as well as the turn towards as trading signals.

10. Carefully observe the relation between the current price and the daily range. Market-based instruments, which is kept high in the limits of its range, has a latent effect, while the tool that kept low and has a hidden weakness.

11. Follow the professionals in the quiet time and for the crowd during the action. Insiders are pushing the price toward which they are satisfied, but they are losing control, when the crowd is in the market. Professional reading data