Nice
movie with lot of philosophy thrown with animation. What struck me was
that the message of the movie is very apt to our trading psychology!
In
one of the scenes under a peach tree the wise old man Oogway tells his
student master Chifu to let go the ILLUSION of control and start
BELEIVING(Chifu has serious doubts that the big fat panda can make a
dragon warrior). He says that things don’t happen as we wish but they
happen on their own and take their own time. Same
with good trade setups we should WAIT to let them happen and don’t try
to preempt them! All we can do is nurture our trade and believe in it!
In
the second instance in the movie when the Panda becomes the dragon
warrior, and open the centuries old scroll to read the secret, he finds
it blank with only his reflection on the scroll. Dejected by not seeing
anything on the scroll he assumes that after all he wasn’t the true
dragon warrior. Realization dawns on him later when his father the
noodle soup seller tells him the secret ingredient in his secret
ingredient noodle soup is NOTHING! Yeah he say there isn’t any secret
ingredient and to create something special one needs to believe in that
you are special. Bingo! There is no secret indicator or method to play the markets….Its only about you and your beliefs in your system. A nice lesson in trading I must say.
Check out nifty daily chart showing big bearish divergence in RSI. What do you make of situtaions like these ? ...Actually the divergence was already there but we gapped up today a made fresh highs, does this mean that the divergence has been neglected by nifty or we are looking for a more stronger downmove ? .......Po awaits your reply Shifu !!!!
ReplyDeleteHi Deepanshu,
Deleteyes if you looking at divergence between two points lets call them A and B. If the price fails to confirm the said divergence between those two points then it has been negated and rendered useless. As reagrds to follow up reaction I am not sure we can predict it with certainity. Again here the clue lies in watching the price action and wait for confirmation signals from it.
Thanks and Cheers