The concept of "testing" emerges as a critical facet within low-volume buy signals, warranting comprehensive examination due to its recurring significance in subsequent discussions.
Notably, high volume, or heightened trading activity, signifies selling pressure during a mark-down phase, a phenomenon encompassed by the term "testing." Tests can take varying forms, with instances of successful tests occurring on low volume and other types of tests appearing on high volume, typically in response to adverse news developments. These tests serve a dual purpose: triggering stop orders and reshaping market sentiment, paving the way for future upward price movements. Successful tests, particularly those executed on low volume, often signal an immediate readiness for a market uptrend, while higher volume tests tend to induce temporary upward moves, usually followed by re-testing of the same price region at a later juncture. Such patterns may manifest as a "W" shape, occasionally referred to as a "dead cat bounce" or a "double bottom," exemplifying the process of retesting a zone previously characterized by excessive supply.
Observing the price chart, we can discern a significant reduction in pressure, indicative of a potential market test within its trajectory. The notable void in activity suggests a clear pathway for price movement once a new "bull" cycle commences. In such circumstances, there is no urgency to act hastily. Numerous instances in the chart exemplify the moments when a decision to enter the market may arise.
Notably, the depicted chart is on a weekly time frame, signifying that the depicted movements transpire over more extended periods. Consequently, it becomes apparent that diligent monitoring is requisite for strategically positioning within the market for long-term endeavors.
Ultimately, it is imperative to acknowledge the challenge inherent in identifying the perfect entry point. Successfully navigating this terrain necessitates the delicate balancing of risk tolerance, patience, and emotional discipline, as these elements are integral to the art of effective market timing.
For a very academic but digestible explanation of how the market works EXACTLY. get the book "Mastering the Markets" By the late Tom WIlliams. He gives away all the secrets. God only knows how he could have used today's technology to beat the markets.
There is no book more important on trading. Once you have been staring at charts for year on end, you will see why. "Mastering the Markets" can be found for free all over the internet.
Notably, high volume, or heightened trading activity, signifies selling pressure during a mark-down phase, a phenomenon encompassed by the term "testing." Tests can take varying forms, with instances of successful tests occurring on low volume and other types of tests appearing on high volume, typically in response to adverse news developments. These tests serve a dual purpose: triggering stop orders and reshaping market sentiment, paving the way for future upward price movements. Successful tests, particularly those executed on low volume, often signal an immediate readiness for a market uptrend, while higher volume tests tend to induce temporary upward moves, usually followed by re-testing of the same price region at a later juncture. Such patterns may manifest as a "W" shape, occasionally referred to as a "dead cat bounce" or a "double bottom," exemplifying the process of retesting a zone previously characterized by excessive supply.
Observing the price chart, we can discern a significant reduction in pressure, indicative of a potential market test within its trajectory. The notable void in activity suggests a clear pathway for price movement once a new "bull" cycle commences. In such circumstances, there is no urgency to act hastily. Numerous instances in the chart exemplify the moments when a decision to enter the market may arise.
Notably, the depicted chart is on a weekly time frame, signifying that the depicted movements transpire over more extended periods. Consequently, it becomes apparent that diligent monitoring is requisite for strategically positioning within the market for long-term endeavors.
Ultimately, it is imperative to acknowledge the challenge inherent in identifying the perfect entry point. Successfully navigating this terrain necessitates the delicate balancing of risk tolerance, patience, and emotional discipline, as these elements are integral to the art of effective market timing.
For a very academic but digestible explanation of how the market works EXACTLY. get the book "Mastering the Markets" By the late Tom WIlliams. He gives away all the secrets. God only knows how he could have used today's technology to beat the markets.
There is no book more important on trading. Once you have been staring at charts for year on end, you will see why. "Mastering the Markets" can be found for free all over the internet.