Today's technology provides huge amount of information on any subject. All the news in the world could be found instantly on the computer screen, any event is covered not just with the words in articles, but you can see live video streams on the events. Markets events are no exception. Huge River of information is just basically drawing you in the events and before you digested one important piece of news, another is already flashing on the screen. No wonder that confusion occurs so often or interpretation of the news has two completely different sides. Basically, as human beings, we are not capable to sort out all the news, we are not computers. And as for the traders, enormous amount of information is just making things more complicated than it should be opposite.
Sorting out the news and information about the market and choosing ones as useful and others as not, trader has an advantage to make a right trading decision. What to choose and what to ignore? This question should be answered by every individual trader. It depends on the traders approach to the market, what analysis and strategies traders uses. Good choice of the valuable information certainly produces good trading or investing results.
Simple things do not attract anymore trader's eye. Many of the traders are using complicated approach to the market and lots of information is lost in the desire to satisfy just one customer: Trader's Ego. Enormous desire to be better than anybody else or to just simply to look good makes trader to forget purpose of the trading itself and simple things just disappears from the trader's attention. While trading the market is completely based on the trader's psychology, we should always come back to the one thing: we can enter or exit the market, just using available information. We cannot have a trading plan if we do not have information about current situation in the market. So we must have a certain amount of information, but at the same time too much information is just a disaster.
For the technical analysis best information would be SUPPORT and RESISTANCE levels. Those two levels are so simple, that many times are ignored by the traders or, in the events when trader pays attention to them, are taken lightly, without giving required attention those two levels deserve. Support and resistance method maybe is simple, but those levels alone provide huge amount of information about current situation in the market and most importantly it provides clear market's direction. Go with that direction and you will never be wrong.
Support and resistance levels can be used in many different ways, but clear understanding of importance of those two levels, should be very well digested by the trader.
We wish you success in your trading.
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