Today I haven't drawn the usual upwards, downwards and sideway trend lines that I often exhibit in my blogs but chose rather to highlight an important aspect to keep in mind when considering technical analysis as a form of understanding price movements.
To the left and right of the chart one will notice diminutive sized candles that hardly help establish the ideal buying and selling points while in the middle of the chart is filled with an explosion of the price range characterised by a rapid rise and fall that's indicative of a bubble.
Hindsight would tell us we would be correct in our thinking however undertaking analysis on this basis will only show up after the fact.
The quickening of price in either direction without a sustained test of the trend is never a feasible environment to trade in although the perception might imply it.
A chart that possesses a smoothness and steadiness of trend as well as showcases neatness are more predictable than one which is erratic and temperamental.
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