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Even if you're a discretionary vibe based TA punter, you should be able to categorise your ideas into a handful of buckets
TA traders love fixating on specific pattern names
"No, bro, it's an inverted Alec Baldwin Shooting Star, not a Doji!"
But what they are really doing is mapping specific well-established market effects
Momentum: It moved fast and hard, so it's going to keep moving fast and hard
Trend: It's been moving in one direction, so it's going to keep moving in that direction
Mean Reversion: It moved a shitload in one direction, so it's going to move a bit in the other
Volatility Expansion: It's been going fucking nowhere, so it's about to go somewhere
Absorption: Someone really tried to move it and it barely budged, so it's going the other way
Catalyst / Catalyst Absorption: This news is about to blow up the book / This news should have blown up the book but didn't, so someone with deeper pockets is eating the headline traders
At least now you can sound smart while losing money from drawing lines on charts (like me fr)
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