How’re your technicals going?
The whole world looks at the same or similar technicals, you know.
For example, if there’s support, everyone knows there’s support.
If a Fibonacci level has been reached, it’s the identical story.
When a trendline is broken, yes, you guessed it, the story hasn’t changed.
Yeah, we’ve got a problem.
What do we do here?
We don’t have an option but to think a couple of steps ahead.
As in, when a support is reached, we’re still talking about support at minus let’s say 3%, ok? Decide whatever number you wish to for yourself here, but till support minus that number is not breached, in your book, support still hasn’t been broken.
Thinking around, that’s what we are doing here.
We don’t wish to be pushed into market behaviour till something is happening.
We wish to forgo noise.
When we act, we wish to do so in a more sure-shot fashion.
A thinking-around approach thus becomes inevitable.
Similary, it’s not a Fibonacci bounce-off till let’s say (Fib62 + x) has been surpassed. Decide what your x is.
Or, a trendline is not broken till the close says so, or till there are two simultaneous closes below or above it.
You get the drift.
Make your own bye-rules.
That way, for all you know, you could still end up using a potentially defunct technical machinery, which, because of your thinking-around exercise, has suddenly become a powerful and potent tool.