Here's an example of a High-Probability, Necessary or Sufficient Descriptor/Signal:
This is one of the laws of price that I promised.
Price must be above the 10-day ma to trend higher and price must be below the 10-day ma to trend lower.
Always true in bull markets and bear markets--no matter where the 20-day or 50-day ma is pointing and whether the overall trend is up or down. This is an absolute descriptor of price behavior. It is not a cause. But it is a necessary condition! Extremely important.
So we want to accumulate all market data similar to this to put in our first pile--our most important and precious pile of knowledge. This is knowledge--not guessing.
If you say, "Yeah but Ted, this information won't change my trading life forever," my reply is this: First we have to know what is always true about price--everything that is true about price always--and when we put it all together, then we will have a knowledge-base a champion can depend on.
One of the major trading issues is TOO MUCH INFORMATION and especially too much IFFY information. So we want to strip price naked down to only that information which absolutely makes a difference, and then we will put everything else in the IFFY pile. Once we have the IFFY pile, we will then categorize and rate that data. But just the first pile alone will change your trading and investing experience completely, forever.
Ted
PS
A huge side benefit of the first pile is you won't have to think so hard. If you set aside everything that's iffy, it's so much easier to see where the great trades are!
