Tuesday, November 13, 2012

The Daily Note - $DJIA ~ Learning from History

***** The past always reflects to the future; it's a mirror. That is the reason I rely on history not only for understanding current events but also for mapping a possible future. If you have read my blogs for the past five years, you will see many references about this thought.

Often people mention learning from history but other than saying that it can repeat, we seldom hear about how we can apply the past to the present or future. It's true that the past often repeats, but if we stick to that alone, we will most definitely misjudge our future. The past never really repeats exactly the same way. Different thoughts, circumstances prevent the exact repetition. Despite that the result can most certainly be the same, but don't confuse the meaning of "same" either. In other words, the Zen quote of "I used to be different but now I am the same" comes to mind. We constantly strive to change and grow and enlighten, but as we do we realize that we are the same with a bit more insight into ourselves. Thus we get to know ourselves better and we take this new knowledge along with our past into the future.

Before I confuse you any further, take a look at the current chart of the DJIA and listen to my weekly outlook in order to get a better idea about what I am speaking.

Allow your vision of the charts to encompass all that occurred before and show where it could go; when you draw that line, it is called the "trend line". Observe that although it can trace away from the line for a while, it does not mean it won't return to it in much the same pattern as before. The difference perhaps is the level or the candles are not exactly the same but the outcome is.

So take the time to study the past in order to gain insight into your future and you won't be disappointed with the result. Just remember it's a mirror, a reflection, an ever dancing light.

J ohn L ennon by Watching the wheels on Grooveshark
Happy Trading, Living and Dancing
Anni

I use the past The Daily Pick - DJIA Weekly Outlook ©DayTrading with Anni 2012 All Rights Reserved -->

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