It is my firm belief that the reason traders lose, is because they dont know how to follow. Instead they want to lead. There's a famous statement.."be first to be second". That holds true for the markets. Markets move on supply and demand. Fear and greed. NOT indicators. The goal of trading is to ride the movement of price. It's not to PREDICT where it's going. That's not the goal of what traders do...however that's what the perception is. The perception everyone always gets accustomed to is.....where the market SHOULD be and how to profit from it. In addition, this is what leads to most of the emotional issues as well. But does that make sense? If I feel something is worth $30 and to another person it's worth $50.....am I going to get it? No. All I do is bid up the price (hey now that's an interesting thought ). It's the same thing with trading. Why assume price should be somewhere.....when there's already someone bigger and better out there who wants it at a far different price. Now turn that one person into millions. See where I am going with this? So here's what traders SHOULD be doing. They should be analyzing areas where those buyers and sellers do and dont want the product. Where's the demand? Where's the supply? Where isn't there going to be supply or where isn't there going to be demand? These factors all move price and velocity of price. Now this isn't going to help the average trader, because the average trader hasn't put the thought into how to profit from this. Instead money is usually the motivating factor. I'll expand on this a little further later, but it's something to consider next time you put that trade in. On a side not this is purely technical. Fundamental is a whole different topic.