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Thursday, 10/23/2014 4:34:03 PM

Thursday, October 23, 2014 4:34:03 PM

Post# of 47292
When trading any chart pattern, one needs to keep sentiment and phycology in mind. Sentiment is short term and if it continues long enough, phycology can change, thus continuing trend.

When you look at a chart break, you need to be thinking sentiment/phycology as time passes. Thus the longer the move, the bigger the odds for continuation on any free trading stock.

The prefect example of this is my Rule of Thumb about flags. "Flags normally come in 3's." Sentiment runs them, Logic takes profits and phycology continues the trend. When sentiment can't break top resistance after 3 flags, phycology forms a true value channel for a while. Patterns are just pictures of traders sentiment and investors phycology. Always remember people are behind price movement. Good chartists evaluate people and history more the lines on a chart alone. This is how to add comfort in chart projections reaching targets. Don't forget volume is a element of sentiment as much as direction.

Those charts having manipulation involved only change when the darkside is done playing with retail. On the OTC that's VC's and at the big boards HFTraders. Exhaustion candles usually indicated change in trend in those cases.




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