​From amateur to professional technical trader, in time that you own

For the purposes of this exercise, put to the back of your mind everything that you have read about trading and technical analysis. Your best approach to technical analysis will be what you discover for yourself: it will be more meaningful to you, more enduring and easier to trade. If what you discover rings bells with what you’ve previously learned, then great! That reinforces things and makes them real to you.
 
Find some time that you can focus undisturbed, without phone calls or text messages, etc. This is allocated as “time that you own” and really is your own time in every sense.
 
Load a random chart (any timeframe will do) from your preferred instruments.   Remove all indicators, any grids or lines, so you only see time and price candlesticks (about 150 bars to the chart screen should do it).
 
Now go to the start of your chart history, and begin the process by scrolling through, one bar at a time, from history to today and allowing a reasonable amount of time for each bar

1. Study the movement of all the visible candles on your screen to see what story they might be telling. Does the overall move look bullish or bearish, or perhaps range-bound? Observe how each of the waves look, identifying which are impulsive or corrective. When you’ve finished, move on to the next part. That should take a while, study the flows and imagine your thought process, as a seasoned pro-trader, what you would have been seeing, at the end of each wave. Do you notice some price levels acting as support or resistance? If so, mark the areas using your platform’s drawing tools. Perhaps you can see price moving in channels. Count how many bars there are in corrective swings compared to the same distance moved in the previous impulsive swing (that’s usually a good indicator that a move is more corrective than impulsive and can also be used to see divergence).
2. Look at the ‘new’ candle, on the right-most part of your screen (as if it is the very latest one in present time) and study the relationship between the open, close, high and low. What story, about the time in which it took to form, does the candle tell you? Don’t move on until you’ve got that story in your mind.
3. Study how the most recent candle relates to the previous candle, comparing the open, close, high and low values of the two.
4. Then do the same for the above two candles, in relation to the next oldest candle, so you are comparing the most recent three together, establishing how they relate. How do the last three candles fit in with the most recent swing? Do they look like they might be ending the swing, continuing it or perhaps just consolidating, along with some other recent candles?
5. If something crops up, as an ‘AHA’ moment, from your own studies or perhaps what you have learned in the past, make some notes about it.
6. Before you complete the exercise, write down whether you think price will move higher or lower, within the next (as yet unseen) 30 bars, and where price might go to – feel free to use the standard Fibonacci tools.

When you feel like you’ve really studied the visible bars, you can move your chart forward by one bar and repeat steps 2 to 5, with some of step 1 when there are about another 30 bars visible. Compare the revealed bars to your prediction, from point 6 and give yourself a point for every time you get it right.
 
This exercise is obviously all about reading price action – really reading it.  When you become competent at it and can start predicting where price will go to, using no indicators and just price bars and previous levels, along with some Fib’ tools, you’re becoming a good technical analyst and well on the road to becoming a professional trader.  The hard part though, after mastering the reading of price action, is to master yourself – but that’s another story. 
 
Most of you will have already done something like the above exercise; perhaps whilst testing every indicator and combination of indicators that you can fit on to your chart.  It will be so much more rewarding when you can analyse naked charts and make your own predictions from what the history of price has told you.
 
You do not need any indicators to be able to trade. eWavesHarmonics just removes a lot of the manual process that you should be doing yourself and helps to remind you of what is important, where the key levels are and where price might go to. Nothing will ever beat what the human brain can interpret from reading price action; especially the brain of a seasoned trader who has studied decades of price action, from back-testing as per the above exercise and live trading.  

The Trader Training Course teaches how to read price action if you need some help along the way but see what you can find for yourself.
 

---