Each one shows a new gap up thrust to yet higher prices on the chart
This chart phenomena is called "3 Drives To The Top"
As the market was making historic all time highs this week,
price breakouts in many stocks are supporting the appearance of strong underlying strength.
Human nature being what it is, the pattern of this uptrend is a combination."
of one price drive up, a second building on the first, and a third to solidify the all time price high.
The piling into stocks completes only when the crowd is comfortable that the is bedrock, and in place.
However,when you open up the car hood, to find out how the engine is really running,
its peak actual performance is not what you might think
I"ve included the"Know Sure Thing Indicator" simply to show you something called " Divergence"
that as price has risen to an all time high, it has done so with waning momentum drive and weaker confirmation.
This "extension " price rally to new highs shows no sign of abating.
Yet at some point, it will end, and the quality of this breakout rally will be measured,
perhaps like no other rally.
This market wants to go up despite everything else right now.
And it's hard not to think it can't continue into 2020,and beyond
And therein lies the crux of the problem.
That overriding complete belief
Thanks for your good work @The_Unwind
Dalio's article is great, I think it's the most read article of last week, everybody is refering to it. there will probably be lots of traders with their stops ready to be collected now...
You are correct.
Waiting for trend change can often capture up to 90 % or more of the move.
Its a much safer bet that way.
However, I have always been fascinated by catching the actual exact trend reversal itself.
I hate to pay more when I could have paid less if I had anticipated the reversal.
Thank you for your continued input and support.
Dalio's the world has "gone mad" piece is exceptional.
Thank you for bringing it here for discussion...
Never fight the fed.