Why Does The Stock Market Stop And Turn At Certain Price Levels?

It is a question of human decision and psychology: if more than one individual believes in certain price culmination points, they are there. Human decisions make price patterns and price changes. The interesting thing is that there are certain price patterns that are repetitive - over and over again. The only thing that changes is the intensity or range of the patterns.
For anybody who wants to be successful I highly recommend to learn those price patterns that are human psychology based. NeverLossTrading.com is teaching them excellently and very applicable for the day trader or longer term investor.

Price patterns are a key to learn and read to achieve financial market success.

As a second category it is strongly proposed to use technical indicators. Those indicators portrait the past into the future and the future can always be different. Buy they kind of work like traffic signs to guide you in the right direction to not get run over and left behind.

On our understanding: 85% of financial market are institutional investor decision based. Hence, it is good to know what type of indicators they use to evaluate the market. But there is another dimension to trading: the element of surprise – not to act along the lines of the general understanding. Look at yesterday, July 7, no market news, nothing and a 3% gain.

Where did it come from?

When looking into the details of this big move, the Swiss banks popped out as a major buyer and investor into the stock market ant the pair: AUD/JPY (a beautiful carry trade).

For how long will this trend hold?

How shall we know, but we have our market radar on and will recognize when they let the air out and I gone know what side to be on.

As a summary, we always have three choices and only by getting a proper financial market education we know which one to take:

• Go with their trend

• Go against their trend

• Just ignore them

Lately there are more and more people who precisely analyze and know what is coming next in the financial world. For us, it is good to have an opinion, but for whomever is constantly active in the financial markets will learnt that it is good to be bios, but it is better to be able to quickly change according to where the market goes. For those who want-to-be-right, it is usually very costly.

For more details: http://NeverLossTrading.com