Dear AbsolueTraders,

    For the nth time, I would like to reiterate that learning TA is a stratified process. You should further develop what you have learned from basic TA by practicing it, instead of going after more advanced technical subjects. Don’t be duped into the pursuit of having the image of being “technically sophisticated”. You should first fully realize your prime objective. Spend atleast 30 minutes of your time daily looking at several charts. Expand your time frame and do your trend analysis. Confirm your studies with the basic tools that you have learned. (it is already sufficient) More importantly, you should spend time understanding the psychological implications of your studies.

    I would like to share with you some other concerns raised by dogmas related to our subject matter. PLEASE TAKE TIME OFF TO REFLECT ON THESE ISSUES FOR IT WILL BE DETRIMENTAL TO YOUR GROWTH AND MATURITY AS A TECHNICAL ANALYST.

1. Japanese Candle Sticks  (japsticks) are more superior to OHLC bars.
   
   Reply: It is a matter of preference and convenience for the user. One who is used to the OHLC bar can be just as skilful as one who uses Japsticks.
   
   
2. Elliot Wave Analysis is the Ultimate form of Technical Analysis
   
   Reply: EWA is just a branch in the subject of technical analysis. As a matter of fact, those who take up EWA with out the proper fundamentals in classical charting fails miserably in forecasting. The best solution is by applying EWA into classical charting and not the other way around.
   
   
3. Classical Charting (trend analysis and pattern recognition) doesn’t deal with technical indicators and that’s why it is not considered by many to be sufficient or sophisticated.
   
   Reply: Really now?! Classical Charting utilizes the 3 most essential prime technical indicators that exist in the world. Heck , other technical indicators are only based in these 3. That’s why its called the prime indicators. Price, Volume and Time. As a matter of fact, at the end of the day, it is all that a technical analyst needs.
   
   
4. Sticking to leading technical indicators increases accuracy and batting averages. Therefore, its usage is absolutely necessary in trading!
   
   Reply: So you think that leading technical indicators would dictate where the price is going? Remember that this short-sightedness is a violation of the first tenet that states that the price is king! The price really is king! It is paramount to all other technical indicators as well. Leading technical indicators only provide us with information about momentum (speed). These only serve as confirming indicators to the price movements. We are not discounting its value in contribution to our studies, but to give it too much weight is boorishness.

We should keep in mind that we are constantly lured into the wrong perception that we should learn everything right away so that we could perform well in trading. We could memorize the terms and definitions but its understanding, usage and application takes time… Lots of it.