I strip away the stock name, I strip away the price levels, so that your mind
will not be affected by what you know and what you don't know. What you
now see is purely price movement.

I actually wanted to start a poll to see what percentage are bullish, bearish and
unsure but I realise I can not start a poll. So maybe Lion or Hc can help do this.

This is "A test that may help you in TA". I don't think anything like this has been
done before, not at least I know of. So let's get the test going.

I want to add that this is a real stock and it is very much alive. Even I don't know
which way it would go. Because I am the one to post this test I will not say my
view else it might affect your bias. Furthermore I know the stock and price level so
I am not good for the test.

Now this is not a test of your skill. It is a test to let you know more of yourself
when you go analysing the market. How much of yourself do you know and don't
know, hopefully this test will tell you.

Bearish!

Look like an inverted saucer, a sideway handle will form and a break down or up might happen at the handle! Likely down!

Hi CSK,

Thanks for the test. It's been afew years since I last seen this test, came across when my sifu Kee Yan (think u might know him..) post the same test on inverted-DJI to a mailing list (I think so..) which was started when the FISH forum is still around. Ochartist, LS400 etc were within the group during tat time..

That was just when Dow Jones almost completed a weekly Rounded-Top (or monthly.. can't remember clearly) and he purposely inverted the chart and ask the same question :lol:

So we shall wait for your updates..


Rdgs,
Lion

I started my market education with the commodity futures market.
Although the word is commodity but the industry expanded to include
the currencies, interest rates and stock indices.

It was therefore natural that my first exposure to currency charts
was the IMM futures. The way they price it just like any commodity
- how much in US$ is this commodity (foreign currency) worth?

So if the prices rise, the foreign currency strengthen against the
US$ and vice versa.

Then come a time when I became involved in the inter-bank way of
quoting. In some currency, they are quoted as how much is US$1
worth in foreign currency.

In this case when prices rise it is the US$ strengthening against
the foreign currency. It is important that you notice the difference.

The Japanese Yen futures in the IMM and the JPY in the inter-bank
are one such example. Therefore, I was then looking at the same
thing but through two different charts. Both should be giving
opposing views but same conclusion. But this is not to be so.

I realized that at times I could be having the same view on both
opposing charts. This was obviously wrong. So I discovered that I
had a natural bias and if I had not discover this accidentally
I would never have known how this could be an underlying stubborn
weakness wrecking havoc internally.

So it is that over time, when I feel the need to, I would purposely
invert charts to check my analysis. If I am bullish with one chart
then I must be bearish with the inverted chart. Only then can my
view be correct.

In every one of us, we have many bias built up through our upbringing
and also through the society of people we interact with. Over the
years I witness my thinking change and with this change my views
and outlook also change.

This test is for you to find out whether you have any bias when
analyzing charts. And whether you have are you aware of it?

Take a look at this Yen chart. The top chart is the IMM futures
while the bottom chart is the inter-bank JPY. It is important that
you must assume you don't know what these two charts are, that they
are different instrument. Then ask yourself these questions:

1) Are you bullish with both charts?
That the top chart is still in an established uptrend. The
correction has just finished therefore prices should resume upside.
That the bottom chart has bottomed out having found good support
and about to make an upward zigzag pattern.

2) Are you bearish both charts?
That the top chart is topping out. Having failed to break overhead
resistance, it is now moving in a downward zigzag pattern. That
the bottom chart is still in a downtrend, the upward correction
is weak and prices should therefore retest recent support.

You have to be very honest with yourself. This part is about you and
your mind. It is a part of you that only you can find out. You can
then decide whether to have this weakness stay with you or you convert
it into strength.

It is not about if you are bullish with one then you must be bearish
with the other. This will be very superficial for it will then ignore
the cause of the effect. And without knowing the Law of Cause and
Effect you will not know how to counter your hidden bias.

I did not know that a similar test was done a few years ago as Lion
said. I thought it was never done before, maybe without going deeper,
maybe without mentioning the hidden bias in us. It is not about our
views.

Those who trade only the stock market usually tend to have a one
track view. They tend to be bullish because this is the only way to
make money. They will always be looking for bottom. So at all levels
a chart will always look bullish to them. Perhaps they need to invert
the stock chart to check that they don't get carried away and be
top heavy in a run up.

The job is in your hands now. The discovery and the remedy are yours.
The reward is also yours but you must first find out how much about
you do you really know.

Thank you for taking part in the poll. Even if you did not vote, I hope you at least
have taken a view just for the purpose of the test. The reason I did a poll is to get
you to have a view, not to know how many are bullish, bearish, etc.

Keep the view to yourself, right or wrong is not important. What is important now
is that I will reveal the real chart and you can see if you agree or disagree with
your earlier view and most important why. And then perhaps you start to look
inside yourself and get to know that person within better.

The poll result as of now is quite balance:





Are you ready? If yes, go ahead and scroll down.