yes and no. There are only buyers and sellers in the market and...

yes and no. There are only buyers and sellers in the market and most of them do not know how to trade.

Every stock index and commodity has its own DNA, so if you study say just one or two stocks you become very familiar with it so you can see what is happening.

For instance I am not to sure if you have any type of software but if you do if you have Turning Points on it you could look at every time a stock changes direction and write thes dates down or cut and paste them into excel and you will see dates/days that keep repeating. Look at a stock at the beginning and the end of a month and see what it does, if it is at a low for the month does it start the next month heading upwards or vice versa at a high and then go down.

There is so much to look at but if you study the following you will make a lot of money.

50% retracement.
Look at a chart of say ABS or NAB pick a blue chip
Then bring up a weekly chart and look at the ranges, pick a top for the year and a bottom for the year and then calculate 50% of that range and draw a line into the future and back into the past on the chart. See what you can see.

Do this for every major yearly major high and low and see what you can see.

You can do this with a daily range weekly monthly etc.

You can use this trading intra day but you make much more money trading the major trends.

You will see a stock will run up and just take a look at ABS for the last run up from the 8/5 to the 16/5. Now look at how much it has retraced, it has retraced back down to nearly 50% of the range up or to be precise around 41% when it retraces back down if it holds above the 50% level then this is strong and you would expect the next range up to be larger than the previous range.

Look at todays bar and you will see the range is from 143 to 150.5 with 50% being 1.4675.

Just have a look at a few different charts and you will see what I am talking about.

Let me know what you see.