Over the years one thing I have learned about temporary or day sellers is that they are a contemptible bunch. When prices fall they try to choose the lowest or lowest travel price. And when prices rise they look for higher or higher meeting sales.
Picking up and down requires an amazing amount of time. But before the markets get tired either up or down there is a pattern in the price action that usually precedes a change in direction. When the market moves smoothly the trend tends to expand. Travel is a route where the distance of the day is close to the average length during the meeting or descent. The 20-day ATR (Medium True Range) is my favorite benchmark.
Usually, before the rally ends there is a panic attack, which brings a signal of over-buying. On the other hand, the overridden signal always kicks before the bottom of the trend.
If the distance of the day is twice as much as usual during the rally, it is considered an excessive purchase. Therefore, the potential for flexible growth with top picks emerges. On the other hand, when the range of the day is twice as much as the rate at which the acceleration is declining, it seems to indicate an even greater degree. When this happens, the bottom fishers stay longer.
Situations of overcharging and stockpiling are common just before exaggeration. Rate speed measurement is an important part of a trader’s toolbox. There are many technical indicators that are intended to assist retailers in selecting the top and bottom fish. Also popular indicators such as RSIs, Stochastics and MACD.
