SUGO Double-Bottom explained >
Wave 1
> Happens when the «market psychology» is practically bearish.
> News is still negative.
> As a rule, it is very strong if it represents a leap (change from bear trend to the bull trend.
> In a state of tranquillity, it usually demonstrates insignificant price moves in the background of general wavering.
Wave 2
> Happens when the market rapidly rolls back from the recent, hard-won profitable positions.
> It can roll back to almost 100% of Wave 1, but not below its starting level.
> It usually makes 60% of Wave 1 and develops in the background of prevailing amount of investors preferring to fix their profits.
Wave 1
The stock makes its initial move upwards. This is usually caused by a relatively small number of people that all of the sudden (for a variety of reasons, real or imagined) feel that the price of the stock is cheap so it's a perfect time to buy. This causes the price to rise.
Wave 2
At this point, enough people who were in the original wave consider the stock overvalued and take profits. This causes the stock to go down. However, the stock will not make it to its previous lows before the stock is considered a bargain again.
Wave 1
> Happens when the «market psychology» is practically bearish.
> News is still negative.
> As a rule, it is very strong if it represents a leap (change from bear trend to the bull trend.
> In a state of tranquillity, it usually demonstrates insignificant price moves in the background of general wavering.
Wave 2
> Happens when the market rapidly rolls back from the recent, hard-won profitable positions.
> It can roll back to almost 100% of Wave 1, but not below its starting level.
> It usually makes 60% of Wave 1 and develops in the background of prevailing amount of investors preferring to fix their profits.
Wave 1
The stock makes its initial move upwards. This is usually caused by a relatively small number of people that all of the sudden (for a variety of reasons, real or imagined) feel that the price of the stock is cheap so it's a perfect time to buy. This causes the price to rise.
Wave 2
At this point, enough people who were in the original wave consider the stock overvalued and take profits. This causes the stock to go down. However, the stock will not make it to its previous lows before the stock is considered a bargain again.
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