Forex Trading Tips and Tricks: Reading a Price Chart

A basic price chart should then be READ FROM RIGHT TO LEFT, and NOT LEFT TO RIGHT.

Reading left to right gives weight and priority to the past.

Reading right to left gives priority and weight to THE CURRENT PRICE.

Regardless if you agree with the current price or not, regardless if you feel the market is efficient or not, the price currently is what you can BUY or SELL it, take it or leave it.

That means then, current price discounts EVERYTHING.

If you say your BMW is worth $100,000, but the only price people are offering is $25,000, then the sad reality of the fact is that your car is worth $25,000.

This is what I coin “Price Reality Theory”.

This is why I personally do not believe in FUNDAMENTAL ANALYSIS.

Yes, the Buffetologists will not scoff at me, and tell me how wrong I am.

But when all is said and done, even Warren Buffet, when he buys, has to BUY at CURRENT PRICE.

If you cannot accept this fact to be true, then I highly recommend you stop reading this website.

Assuming you can accept what I just wrote above,

….let’s move on to  the application of this trading theory. 
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