Kardec Trader argues traders overcomplicate things by labeling price moves with pattern names like bull flags. Instead, focus on who's moving the market and what the initial impulse and pullback actually mean. Strip away the names and read the price action.
Trading is simple, yet it's not simple. What I mean by that is a lot of people when they cover trading and to each their own, but it doesn't make sense to me because it's like when you look at the market as a whole, big money's moving the market and big money is not looking at a bull flag pattern, in my opinion, saying, bull flag pattern, hey Billy, go put a billion in. That's my point. The concept is there in terms of what Price Action is saying, well, there's this pattern that exists. Cool. Let's dissect the pattern. Let's understand what is happening. Well, what was the initial move? Well, we got a good strong spike up. The stock is pulling back in a healthy pull and it continues. Cool. We can give that whatever name we want, but let's understand the move first. Let's take the name out. Let's not call it anything. Let's just understand the context. When we start giving names, in my opinion, we start making it very difficult to analyze the proper moves from the wrong patterns. And that's where I've seen a lot of traders get caught up in the bad mix because they'll give every little move a pattern without understanding the context of that pattern, context of that move, which makes their trading more difficult.
