|
PureBytes Links
Trading Reference Links
|
> > if all of a sudden most of us have and expectation that dow
> > will go to 12000, it will.
if majority of the market participants decide to buy now
all the way up to 12000, dow will go there. can't argue with
it. it's the law of supply and demand.
> This is just not true. Most who bought or held the NDX above
> 4000 or 4500 in February and March thought it was going higher, not
> down under 3000. It is a well documented that markets frequently
> reach extremes in sentiment at tops and bottoms. Commodities
> markets often see 90% bulls near tops and 10% bulls near bottoms.
price is moved by the law of supply and demand.
supply and demand is controled by price expectation.
more sellers than buyers will push the price down.
more buyers than sellers will push the price up.
more sellers implies price expected to go down.
why would you sell otherwise?
more buyeres implies price expected to go up.
why would you buy otherwise?
expectations change - price moves.
this is not me, this is the law. can't argue with it.
buying the top means you were wrong about price
expectation or it changed. same for the bottom.
> >same about fib levels.
> > that's how it works.
>
> Glad to hear you know "how it works." Please post where and when the next
> 1000 point move in the NDX will likely be. Or at least give us a hint.
i still don't know 100% how it works yet.
knowing how it works does not mean you know where it will go.
in fact my conclusion if you read my previous posts is that price
is mostly unpredictable...
all because expectations are hard to measure, are not static,
can turn on a dime, change all the time, too dynamic, etc.
best thing you can do is buy dips in an up trend and
sell rallies in down trend, expecting! the trend to last, right?
right.
bilo.
|