Spending time trading forex or reading different analysts online will make people realize that different traders see the same forex charts differently. There are many reasons other traders see things in different ways.

Having Bias

Traders will surely face one of the biggest problems, which is going into a market with a bias. For instance, traders might think that the euro is not going to be around in 20 years. If they believe this, they might approach the EUR/USD pair with a negative bias under most circumstances.

However, markets don’t care about what traders think 20 years down the road; they only focus on what is happening right now. So, if traders have but ultimately negative bias, it will skew trading decisions – unless they are willing to let it go. But most people don’t, and this is problematic. For example, even if the euro will go zero, there would be some bounces along the way, maybe a week at a time.

The Time Frames

In addition, the way people work with different time frames is another thing that can massively influence how a variety of traders see the same forex charts. Let’s say a scalper isn’t worried where the Australian dollar is trading against the U.S. dollar over the next few moments. But a swing trader might be interested in weekly support. A swing trader knows that a 100 pips stop loss in the big scheme of things is nothing, but the trader also has another focus and position size than someone who is scalping the one minute chart. The stop loss might be 12 pips. Still, their position size might be bigger too.

Seeing Bad Analysis

Bad analysis does exist. Some traders do not quickly grasp technical analysis, and they don’t see the same things others with more experience or skill would. Not everyone is a naturally profitable trader. Others are horrible when it comes to reading a chart.

People who can’t understand technical analysis will likely look at the trend but may not clearly see support and resistance. It’s not new that traders have different skill sets, causing them to misread charts.

Technical and Fundamental

One more way of seeing the same chart differently is by focusing on fundamentals when other traders concentrate on technical analysis. Eventually, fundamentals will influence the price action, but that doesn’t indicate they will have an impact today.

Methodology

There is quite a subjectivity in Elliot Wave traders. But it does not mean that there are not there aren’t good Elliot Wave traders out there. Keep in mind that no matter what system or methodology traders use, it’s not going to be correct 100% of the time. All of them can make money, but they will fire off the different signals at different times. Generally, it comes down to determining when the system is most likely to perform well and when it is not.

A Million Reasons

Sometimes, it’s the lack of focus, distraction in the room, or being emotional due to the last trade with losses/gains incurred. In the end, it’s not bad that traders interpret forex charts in different ways. In fact, that’s what makes the market; people need someone to sell while they are buying and vice versa.