Sentiment cycle. Two sentiments and FUD.Based on Livermores "opposite day trading", Qullamaggies 10/20/50.
Livermores emotion cycle doesn't fully explain price dynamic. In practice markets or crowd have a clear sentiment of "safety" and trust. and "danger" and distrust.
You can have a strong market... that breaks and starts crashing --> You know the sentiment wont be the same. You see some risk taking fomo.. but it doesnt end nowhere. Because the core of every strong market is strong momentum technicals or setup. Odds in your favor etc.
It's very clear where the SENTIMENT (cycle) shifts to crashing and "it wont be the same anymore". towards risk on (setup).
Categorizing all market on RISK-ON, RISK-OFF (at near term) wouldnt explain the dynamic either... because like most of the time (maybe 80%) market is on a FUD mode.
Livermore was good at explaining crowd temperature.
Something could be bullish, but still on FUD mode -> and you get these tiny sell offs, losing due to SL or selling on fear.
clear "RISK ON" is where, based on Qullamaggie, there are strong upsloping quick MAs (10/20/50). --> best explanation would be that people trust in the market. It's hard to lose, when everyone throws money at market.
eventually it leads to FUD channels etc. or corrections.
Even today --> there do always be some chance, that market just crashes. No guarantees. Strong technicals but FUD sentiment.
//April, May, June were all FUD.. fear uncertainty doubt.
Livermore said there was only two emotions, Fear and Greed.
