In this article series I will go trough some of what in my opionion are the main factors to be considered in trading, based on my own personal views and experiences, and I will do in a kind of self - introspective way,so please, don't get stressed if for some reasons you find your self in opposite opinions.
What are we talking about when we speak of analysis? Some years ago when I started trading, analysis meant this:
What do you see in this chart above? I tell you: it is a compression of data showing market movements during a certain period of time. In this case, every 4 hours, the program will draw the so called "candle" to give us a visual representation, but if we would be able to zoom enough out a tick chart, we would see exactly the same moves. I say this because, I suspect this concept is not really clear to many people: what you see is data compression! Candles are those things we can light up on a romantic dinner with our partners.
There is a level where is more convenient to buy, and there is a level where is more convenient to sell (or not to buy), but how do we determine that level? Is it really so c…