📊 Pillar One: Technical Analysis through Elder's Eyes
In a world flooded with complicated charts and overloaded indicators, Alexander Elder stepped in and said:
> “Indicators are not the goal… they’re just tools to help you understand market behavior.”
Elder didn’t believe in complexity.
He focused on a few powerful, simple tools, mainly:
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1️⃣ MACD – The Heartbeat of Market Momentum
Elder considered the MACD his primary indicator because:
It reflects market momentum.
It shows when a market is in a strong buying or selling wave.
He didn’t use it just for direction, but also to spot reversals.
For Elder, MACD offered a big-picture view — not just focusing on candles, but reading the market waves.
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2️⃣ Moving Averages – The Market Filter
Elder avoided trading in chaos.
He used Simple (SMA) and Exponential (EMA) moving averages as a filter:
Price above the average = uptrend.
Price below = downtrend.
You don’t buy/sell based on it alone — but it helps you understand which way the current is flowing before you jump in.
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3️⃣ Volume – The Truth or Lie Detector
Elder always looked at trading volume:
> “When the market lies, it whispers.”
A price move without volume? Be cautious.
A drop with exploding volume? That’s the market screaming in fear.
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👁️ The Secret Isn’t the Indicator… It’s How You Use It
Elder taught that there’s no magic indicator.
But if you learn to read the market with a psychological lens, every signal becomes a living heartbeat.