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Bill,
Yes, agree price action does "indicate" potential direction, does this paragraph
of
yours mean bar sequence pattern, and volume to help you decide?
Or how you trade in a volatile day?
Felix
T-BONDTRADER wrote:
> Now, price action can, in certain circumstances, give you an INDICATION of
> what it is likely to do next. For example, if a market has been steadily
> climbing and then puts in a large up-thrust (a bar that opens on the low,
> goes miles in the air, but cannot breathe in the rarified atmosphere for
> lack of takers and then falls back to close on the low) it is an INDICATION
> that the market cannot go further. It therefore will probably reverse. The
> pattern is giving you an INDICATION of what is likely to happen next. What
> actually happens next will depend on a lot of other factors as well. The
> time frame you are in will count for a lot as well. The size of the market
> you are in and the way that particular crowd behaves will count for a lot
> too.
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