Thank You if You followed my charts from Chart 1 through 2 to 3.
Here I wanted to point out that the aforementioned pumps and dumps are not only seen on the smaller scale, obviously.
Market moves are based on psychology, how people think about buying and selling. There are certain patterns that people tend to follow when they are enthusiastic or when full of uncertainity.
If You are interested, please check out my older posts about this phenomenon. These posts are not based on clasic trading analysis, so they don't really lose that much of their meaning with time.
Now, the sudden pumps and dumps that are shown in chart 1 and 2 are just examples, but they describe how this recent market and rally is playing with our senses... and nerves. Classic trading analysis shows very confusing signs recently, and that's because the regular investor's psychological patterns are broken by sudden moves which happen in a matter of minutes, and make price swing large percentages. But there is always a larger scale, and big investors, whales, might have a psychological pattern as well. Or at least good-ol' techniques that they used with success in the past, and might use the same techniques again.
Why? Because little unexperienced investors, and even the little investors who are experienced but don't have enough funds to manipulate price, tend to forget what happened in the market 1-2 years ago, or simply can't do anything about it. You know, "this time it's different". So successful techniques have a chance to work again for the big ones.
Here I compared 2017-18 rally with the recent one. I already posted a somewhat similar chart, but this tries to show where we might be. Of course these rallies are not mirror images of the other, things don't happen in EXACTLY same ways in life. But there is an obviuous similarity. For me it suggests that the big guys might repeat their good-ol' movements, and if that is so, then You can easily see what's coming soon. It will be interesting to see whether they can / will win the chess-match with the same moves again, and again, and again, and again... Or did people learn their moves at last? Or maybe the big guys are bored of our game style and want to win in another way now, to freshen up things a bit? But why do such things if you can beat the sh*t out of your opponent anyway?
Decide for yourself. But I recommend to beware of the saying "this time it's different". Might be. This just might be the first time when it is different. Or will be different on the smaller scale, but not on the large one. Maybe this whole rally is just "move 1", right? And the top is at 100k. What do You think? :)
Of course, this is not trading advice, neither my previous charts, Chart 1 and 2. These are just thoughts.
Thank You for reading my posts, I am really happy if You enjoy them!
BIG RED UPDATE: The BIG red candle happened since I started to make this miniseries consisting of three ideas. Not so unexpected if you havew read my posts. Looks like I am not completely out of my mind. Maybe the chess-match will be the same as always after all...
Regardless of this, please read my Chart 1 and 2 as well, it would make me really happy to see that people are interested in my work. My charts are not really about technicals, rather psychology and thoughts about the market, so you might find some useful info in it, since they are not so strongly related to recent events.
*****
Anyway, I recommend to eat the big fishes, they are tasty.
You deserve to eat them. And they deserve to be eaten as well.
Here I wanted to point out that the aforementioned pumps and dumps are not only seen on the smaller scale, obviously.
Market moves are based on psychology, how people think about buying and selling. There are certain patterns that people tend to follow when they are enthusiastic or when full of uncertainity.
If You are interested, please check out my older posts about this phenomenon. These posts are not based on clasic trading analysis, so they don't really lose that much of their meaning with time.
Now, the sudden pumps and dumps that are shown in chart 1 and 2 are just examples, but they describe how this recent market and rally is playing with our senses... and nerves. Classic trading analysis shows very confusing signs recently, and that's because the regular investor's psychological patterns are broken by sudden moves which happen in a matter of minutes, and make price swing large percentages. But there is always a larger scale, and big investors, whales, might have a psychological pattern as well. Or at least good-ol' techniques that they used with success in the past, and might use the same techniques again.
Why? Because little unexperienced investors, and even the little investors who are experienced but don't have enough funds to manipulate price, tend to forget what happened in the market 1-2 years ago, or simply can't do anything about it. You know, "this time it's different". So successful techniques have a chance to work again for the big ones.
Here I compared 2017-18 rally with the recent one. I already posted a somewhat similar chart, but this tries to show where we might be. Of course these rallies are not mirror images of the other, things don't happen in EXACTLY same ways in life. But there is an obviuous similarity. For me it suggests that the big guys might repeat their good-ol' movements, and if that is so, then You can easily see what's coming soon. It will be interesting to see whether they can / will win the chess-match with the same moves again, and again, and again, and again... Or did people learn their moves at last? Or maybe the big guys are bored of our game style and want to win in another way now, to freshen up things a bit? But why do such things if you can beat the sh*t out of your opponent anyway?
Decide for yourself. But I recommend to beware of the saying "this time it's different". Might be. This just might be the first time when it is different. Or will be different on the smaller scale, but not on the large one. Maybe this whole rally is just "move 1", right? And the top is at 100k. What do You think? :)
Of course, this is not trading advice, neither my previous charts, Chart 1 and 2. These are just thoughts.
Thank You for reading my posts, I am really happy if You enjoy them!
BIG RED UPDATE: The BIG red candle happened since I started to make this miniseries consisting of three ideas. Not so unexpected if you havew read my posts. Looks like I am not completely out of my mind. Maybe the chess-match will be the same as always after all...
Regardless of this, please read my Chart 1 and 2 as well, it would make me really happy to see that people are interested in my work. My charts are not really about technicals, rather psychology and thoughts about the market, so you might find some useful info in it, since they are not so strongly related to recent events.
*****
Anyway, I recommend to eat the big fishes, they are tasty.
You deserve to eat them. And they deserve to be eaten as well.