Kardec Trader explains why most traders fail at technical analysis. He covers Bollinger Band contraction, price consolidation, and how to use shorter time frames in ranging markets. Position sizing and risk management change depending on your time frame.
So when you look at a Bollinger band, anytime I see this where Bollinger bands have contracted and let's just look at this scenario right here. You got Bollinger bands coming in, so you've got contraction, you've got really ranged prices. So when I see this, what does it tell me? Two way take, I could be long, I could be short. I go down in time frame. Because when you go down in time frame, anytime you're in a consolidation, short term technicals matter more. See, a lot of people will look at longer term charts and they'll look at them and say, oh, you know, we're in this big bullish trend or we're in this big bearish trend. They'll try to execute that on the short term charts. And what's happening is the longer term trend just overpowers them. Right. And so it's too hard to manage the risk. So if you're one of those traders who understands and looks at bigger primary trends, you want to be trading your position, sizing more according to that time frame. Yeah.
