Trado33

imagine no TA, The self fullfilling prophecy instrument

BITSTAMP:ETHUSD   이더리움
TA is an instrument to predict future movements, though it is also deciding future movements. Imagine there is no TA, then people would not place sell and buy orders on the range lines. Now many people place there orders based on a few TA graphs. This means that self fullfilling prophecy will keep the price of an asset in the range created by TA. All orders make a resistance or support line more strong. Support lines and resistance lines are partially created by TA, which is something that stads in the way of the real valuue of an asset. Therefor we get a huge dfference in real value and market price. Then, when the price goes out of range, we see a huge void, an empty space with hardly any orders. Not many traders place orders out of the range, so in that case, an asset can go up and down real fast. That is explaining the wild moves up or down, when an asset gets out of range.
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