Working the Grind – Market Chart Analysis Ad Nauseam

Valentines Day was just another Friday, which was just another day of market chart trading analysis.

I’ve been spending heavy hours day after day focused on market price fluctuations…

The general process is:

1) Researching and analyzing chart data.

2) Using my research results into the design of my trading system for predicting future movement.

3) Testing my methods in live trading for direct evaluation.

4) Check trading system for how accurately trading model matched actual market movement.

5) Determine what trading model changes are needed for improvements.

Then it’s back to step one of researching/analyzing chart data, as well as going through all the other steps in a repeat loop until the desired results are obtained.

It can be quite time consuming and tedious, which is the heart of manual system building. Doing this with focus over time creates a feedback system with your mind and trains your brain to problem solve in this particular area.

I’m happy to report that this process has been paying out dividends in market understanding – finding key pieces of the puzzle of market behavior that repeats over time, and more importantly, determining how these puzzle pieces fit together. It’s taken quite a bit longer than I anticipated in developing this deeper understanding, but that’s related to the nature of the market being filled with so many elements that need to be considered.

One of my first big revelations was that economic news reports and headlines have negligible use in determining future market activity. The news can be horrible and the market can continue to climb higher and higher. Conversely, the news can be good and the market will remain flat. It’s been my experience that the market drives the news, and not the other way around. What I mean by that is the news media looks at market activity, and then tries to link that action to some corporate or economic event. Knowing this makes it easier to maintain focus on market behavior rather than all the talking heads spouting varied opinions of where the market is headed.

Trading analysis can be a grind, but the progress gained, though not as fast as desired, makes it all worthwhile.

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6 thoughts on “Working the Grind – Market Chart Analysis Ad Nauseam

  1. I imagine that in your brain is an infinite web of “if, then” postulates. Looking in from the outside, that s the only way I see myself analyzing it all. Requiring time, patience, and clear and straightforward organization. Sounds now like my managerial life at home.

    Like

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