Have you ever taken a chart and looked at it from the flip-side?
Why would you do that? To avoid bias. There is a long bias and a short bias. We all have biases, but just need to confirm it by a simple test. Plot a chart of SYM and then plot the inverse of the chart next to it by using 100/SYM. You can make the numerator any size you want to get the price scale you want. In the example above I used 10,000/DIA to plot the inverse of the DIA as a $59 stock instead of a $168.23 stock.
If you see a difference in the charts then you have a bias and it would be good to take any of your charts and flip them over first to see before you take a trade.
Look at the chart of the DIA on the top left. It looks more bullish to me than bearish and my eye sees the resistance as more likely to be overcome to my eye than the chart on the top right. I see the base as more supportive and the area above as a zone to retest and work through the resistance. Therefore, I have a long bias. I see the chart on the right as bullish (bearish in reality, the inverse).
See what you find in yourself. We are all different and we also see different parts of the chart stand out to our eye when we flip it over. Check it out for yourself.
Tim
11:58AM EST 10/7/2015
Why would you do that? To avoid bias. There is a long bias and a short bias. We all have biases, but just need to confirm it by a simple test. Plot a chart of SYM and then plot the inverse of the chart next to it by using 100/SYM. You can make the numerator any size you want to get the price scale you want. In the example above I used 10,000/DIA to plot the inverse of the DIA as a $59 stock instead of a $168.23 stock.
If you see a difference in the charts then you have a bias and it would be good to take any of your charts and flip them over first to see before you take a trade.
Look at the chart of the DIA on the top left. It looks more bullish to me than bearish and my eye sees the resistance as more likely to be overcome to my eye than the chart on the top right. I see the base as more supportive and the area above as a zone to retest and work through the resistance. Therefore, I have a long bias. I see the chart on the right as bullish (bearish in reality, the inverse).
See what you find in yourself. We are all different and we also see different parts of the chart stand out to our eye when we flip it over. Check it out for yourself.
Tim
11:58AM EST 10/7/2015
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
