A Feel for the Markets

In The Harmonic Trader, I discussed the importance of developing a feel for the markets, especially as it relates to harmonic price behavior. Developing this “intuitive feel” for the markets is where the lines of the art and the science of trading merge. Again, despite the fact that incredibly harmonic price action helped to determine the overall market positions, these conclusions still fall under the “artistic side” of trading. I prefer to call these types of decisions “educated assessments.” Regardless, this situation truly manifests the “feel for price action” that is required to successfully navigate the financial markets.

One of my favorite classic books on the markets—How to Make the Stock Market Make Money for You by Ted Warren—aptly describes this feel as a technical “know how” to be successful: