![magic lines forex magic lines forex](https://i2.wp.com/www.dolphintrader.com/wp-content/uploads/2016/04/buy-sell-magic-forex-trading-system.png)
a trend line or moving average is broken to the downside). If the fundamentals are more bearish, the price moves lower and the technicals support that move (i.e. If the fundamentals are bullish, for the EURUSD, they push the price higher and the technicals - like the MAs - support that move (i.e the price moves above a moving average or stays above a trend line). The "market" is ALL the global traders who move the price up or down in an organized, efficient auction process. The "market" (again in quotations) determines the price action. In fact I see "a market" (note in quotations) that is ignoring technicals, like my beloved 100 and 200 bar MAs.ĭoes misbehaving price action debunk technicals as black magic, some sort of voodoo, or simple craziness? The stock guy is writing about bonds and FX.Īnyway, there are times when I look at a chart and I don't see much. The bond guy is writing about FX and gold. Sometimes the FX guy is writing about gold. If the price moves higher, the story can often be written to support the move. Typically, the fundamental story is cahoots with the technicals. Where is the risk defined from a fundamental story? When a new fundamental story tells a different story? When the story is debunked? When gold does this, the stock market does that, or oil does something else? The fundamental story influence price action, but that story does not define risk.
![magic lines forex magic lines forex](https://images.milledcdn.com/2021-11-06/J0iM6HmuccfMCXPr/ahmandKMv599.png)
The "borderline" - where it is bullish above and bearish below (like the borderline of a state or country) - tells me if I am in New York or in New Jersey, in Spain or Portugal, in Italy or Switzerland. Move below more bearish." That is what technicals do for me.
![magic lines forex magic lines forex](https://s3.tradingview.com/q/QsSGMKtP_mid.png)
You will see me write."Stay above more bullish. That creates levels that tend to solicit a reaction either up or down. Technical's - like MAs - provide a basis for defining risk. Trading decisions can be made that focus on defining risk. Because traders ALL over the world are looking at the same picture and the same (similar) moving averages (MAs).