Personally, I wouldn’t because the way that commentaries or even speech by him… usually what it effects is, it will be reflected immediately. And after that, then things will go back to rather normal again.

So that would be a correction of what he said.

Yeah. There’ll either be a correction or it will be a gap up, then after that things will behave as normal. Unless whatever he says might potentially have a long term implication. But even, let’s say with the trade war does become a long-term thing. It’s really hard to tell what’s going to really happen thereafter. So I don’t think that most of us will actually have that capability to identify so many moving parts.

Okay.

Because, even just one speech he makes has a lot of moving parts, right.

Yes.

The impact of his speech actually or the impact of one of his decisions actually have a lot of moving parts in terms of outcome. So you can never know exactly what are all the moving parts that can cause a different outcome to inter-relate or inter-affect each other.

So, if that’s the case, then why would you want to get yourself cognitively loaded with so many uncertainties. Just go back to the chart, as long as the chart doesn’t show you… or as long as the chart continues to show you the usual trending characteristics, the usual support resistance level. Okay. Then that is actually, for me, the most important part of it.

But once you see your chart going out of sync that means the way he moves, is like very volatile, very random. And you can’t identify where are the key horizontal support resistance any more. And you can’t clearly identify what is the trend line. Whether its a downtrend or an uptrend. You can’t identify easily any more. My suggestion would be to leave that chart out first.

 

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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