Sol Palha is the head financial analyst at Tactical Investor. He is a self-taught Student of the Markets, having widely read conventional and non-conventional texts on all aspects of technical analysis, Mass Psychology
Emotions are the main driving force behind the markets, not technical analysis or fundamentals. Those that focus on one or both of those elements are missing a huge part of the picture. Once the emotion that’s driving the markets is identified one can determine the trend and then fundamentals and technical analyse can be used to refine one’s analysis further.
When combined Mass Psychology
and technical analysis are second to none and can accurately help one determine market topping and bottoming actio
n in advance of the event. One should not confuse topping and bottoming action, with trying to predict the actual top or bottom. An endeavour best left to fools with plenty of time on their hands and an inordinate capacity to deal with pain and failure.