Market Analysis

The Analysis That Is Really Arithmetic

Four jobs get handed to an assistant more than any others: read the structure, mark the levels, check the indicators, compare the timeframes. They look like four different kinds of judgement and they are not. Structure is counting swings. A level is counting touches. An indicator is counting crossings. A timeframe comparison is the same count run at two bar widths. All four are arithmetic wearing a judgement's clothes, which is exactly why handing them over works — counting is the one thing the machine does better than you. It is also why the same failure appears in all four: every count needs a rule, the rule is yours to supply, and if you do not supply it the assistant will pick one and never mention that it did. This paper gives the four counts, the rule each one needs, and the interpretation that arrives unrequested with every answer.

Difficulty

Intermediate

Reading time

42 min

Pages

20