For a steady growth, the market has to comply with certain rules of nature. Like every other type of growth, Fibonacci measurements do play a big role as well as in the markets. As illustrated on my graph, there is a likelihood of abcd bearish pattern
to be formed. On my previous post, there was a correction pattern that was formed(max bullish butterfly
pattern) since last week and i expected the market to go bull after the news event yesterday but it really didn't continue to go bull. So the smart money did fool me nicely.Today there were minor news events but it really didn't give an impact.
Either way I am still holidng long as I am expecting tomorrow's news events to give it a nice bullish
Theory behind this, I think the smart money are waiting for a major impact news to profit from. All this consolidation you see in the chart are driven by unskilled retail traders like us. The 5% are waiting for the right time to get in the market. The general trend of this market is bearish
and the smart money will move the market to the 50 level to go with the nature of growth. They will be making profit both sides.
So be careful boys and girls; and don't trade blindly :)