THE SECRET OF THE DAY TRADE WINNING TRADERS!

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In this video, I want to talk about causality in the markets, I want to show you that you may be anchoring on the wrong premises to determine a cause and effect relationship in price movements.
Translating to a simpler language:
I want to show you that the traditional variables, that is, graphs, indicators, patterns that you follow to do day trade may not be good causes or real reasons for prices to move!
I want to show you how prices really move in the market.
But for that, I need to ask you:
Do you know what is causality and correlation?
First, correlation is the connection of two events.
What you need to know is that correlation is the relationship between two variables.
The second thing: what is causality?
Well, causality presupposes a cause and effect relationship.
It means that the occurrence of an event effectively causes the occurrence of another event.
But André, aren't they similar?
Correlation not to be confused with causality?
Yes, despite being similar, the existence of a correlation does not necessarily imply a cause and effect relationship, in a causal relationship.
Do you agree that there can be a positive correlation between the number of firefighters and the magnitude of the fire in an accident?
The correlation must be high.
But is it the number of firefighters that causes the size of the fire?
In fact, the size of the fire is what causes the number of firefighters!
Another interesting example is to make a correlation between yellow teeth and lung problems.
The correlation is also high, but what causes yellow teeth and lung problems is smoking.
Let's talk about day trade and stock exchange for this video to be more interesting!
What variables do you look to operate?
What was the trigger for you to buy or for you to sell?
Let's go and see if I try to guess: you operate by the conventional method, looking at some technical indicator, some technical analysis indicator or some combination of indicators (moving average, IFR, MACD).
And here I want to make some considerations.
All technical analysis indicators are derived from price!
For example, the 21-period moving average consists of twenty-one information at the close of the day, the closing of the five-minute, 15-minute, or 30-minute bar.
In other words, we need the sequence of 21 past prices to calculate the moving average information now.
With that, I want you to answer me :.
If it is priceless, how can there be an average?
There's no way, right?
Well, the main point that I want you to understand in this example is that prices cause the average and not the other way around, as most believe!
There is no causality of technical indicators with price.
They are simply the representation of sequential prices in the past, calculated using an average.
What really has a cause and effect relationship with the price variation is the flow of orders!
Winning Attitude Always!
André Antunes
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ATTENTION: The publications of this channel are exclusively educational. The content contained herein is not a recommendation, indication and / or investment advice, the decision making and the consequent risks being the sole and exclusive responsibility of the viewer.
00:00 - André Antunes - Scalper
00:49 - Causality X Correlation, do you know the difference?
00:56 - What Correlation?
01:25 - What is Causality?
02:33 - Practical examples of these concepts!
04:55 - Applying these examples in Day Trade!
05:35 - Do you operate by technical analysis indicators?
06:14 - All indicators are derived from price!
07:13 - Do prices cause the moving average or the other way around?
08:20 - Do you operate by graphics?
08:56 - No price, no graphics!
09:36 - Reflect with me on this graphic pattern!
10:16 - How many patterns have you seen work?
11:21 - What really has causality with the price is the Flow of Orders!
13:07 - That's what makes the market go up or down!
14:57 - Indicators and charts are correlated with price, but not causality!
16:36 - Understanding this is essential for a trader to have consistency.
17:31 - Drop the guesswork!
18:34 - The decision of the great participants is what matters.
19:21 - Keep this with you!
21:15 - Access the website: www.scalpertrader.com.br
21:16 - Follow me on Instagram @ antunes.scalper
21:17 - WINNING ATTITUDE ALWAYS