It might be helpful to describe the market mechanics of what actually causes a double-top/bottom to occur for a financial asset. In economic terms, double-tops/bottoms tend to occur as a result of actors in the financial market en-masse determining the same approximate optimal price point for which to exit/enter the market based on prior price history (i.e. a local maximum/minimum in mathematical terms). As more transactions occur for an asset around the same local maximum/minimum price point, actors drive down/up the price of the asset (illustrated by the wick action for the double-top/bottom you see in the candle charts). This occurs much more common for assets trading under heavy volume due to having more actors in the market making the same decisions (and thus influencing future actors to do the same around the same time frame). This is an example of the "tragedy of the commons" economic principle in action for financial markets. Love the channel!
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Yes, yes, yes!!! Great stuff! Just to underscore your mention of Volume gentlemen, Volume = Cause, Price = Effect. To use an analogy I learned many years ago, think of your stock as a store. How long is that store going to last with fewer people paying more money? Likewise, if Price is going up while Volume is going down, it ain't gonna last. And apply the same thought process to a stock that's falling with less and less Volume.
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The previous day's last low acts as resistance I gather.
It might be helpful to describe the market mechanics of what actually causes a double-top/bottom to occur for a financial asset. In economic terms, double-tops/bottoms tend to occur as a result of actors in the financial market en-masse determining the same approximate optimal price point for which to exit/enter the market based on prior price history (i.e. a local maximum/minimum in mathematical terms). As more transactions occur for an asset around the same local maximum/minimum price point, actors drive down/up the price of the asset (illustrated by the wick action for the double-top/bottom you see in the candle charts). This occurs much more common for assets trading under heavy volume due to having more actors in the market making the same decisions (and thus influencing future actors to do the same around the same time frame).
This is an example of the "tragedy of the commons" economic principle in action for financial markets.
Love the channel!
Awesome explanation, thanks.
John darry has absolutely been an amazing trader since I started investing in his bitcoin trading platform my portfolio went from 1 to 8.5 BTC in one week.
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Yes, yes, yes!!! Great stuff! Just to underscore your mention of Volume gentlemen, Volume = Cause, Price = Effect. To use an analogy I learned many years ago, think of your stock as a store. How long is that store going to last with fewer people paying more money? Likewise, if Price is going up while Volume is going down, it ain't gonna last. And apply the same thought process to a stock that's falling with less and less Volume.
I know I'm not suppose to comment this on your post but I'm sharing this because I have been blessed with his guidance and technique, he had help me achieve my dreams at first I thought it was all lies not until he prove me wrong God bless you Jeffrey_Larry
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