I have seen many Intraday Traders holding a table containing the Fibonacci Numbers or Gann number or pivot tables for Intraday Trading, and they even use it for long term Investments.
Very few Analyst or traders, say the remaining ten percent, would look into the trading patterns that form in the charts. People don’t prefer studying patterns simply because it is a laborious process. Analyzing the chart patterns need lot of patience and it requires lot of time to come into a decision about the direction of the Market.Where as calculating the levels based on closing, opening, high and low prices is so simple.
Certainly, various levels based on different numbers do have impact on the market. I have seen many instances of a Stock taking support or being resisted at certain Fibonacci levels or Gann numbers. But these numbers would not really reveal the direction of the market. For forecasting and predicting any markets, one should know the direction of the market. Without knowing the direction of the Market, trading levels would offer less help in analyzing the Market.
Chart patterns are the one which would give you a clear picture of the internal dynamics of the demand and supply. Pattern study combined with various trading levels would certainly improve the quality of the forecast. Outcomes, that come from decisions taken based on levels would give a result as probable as tossing a Coin. Studying the patterns is the only most important for successful forecasting.
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