Its not to say that the majority of people play these breaks of previous highs. I know its common, but I sure see alot more pictues of traingles on here than horozontal lines. No big deal. But the reason the volume is so high on them is because on days where breaks of previous highs happen, you often get breakouts on all three styles. So on breaks of previous highs you get the momo from all of them. But alot of times people buying into a triangle break will do so, and not get any help from the other modes of thinking, because it will never reach that break, or won't be enough for the common MA crossovers. Just a thought.
Heres a good example, I heard a widely respected trader (whom I think is a great trader) make this comment. "That was a great bounce off the 18 day moving average." WHAT?!? Who's paying attention to the 10 Day moving average? That's gotta be at least tenth on the list of moving averages. But the honest truth is, if you keep tweaking with the MA's, you'll find one that the price just bounced off. In this case, it was the 18. I'm just saying, you can't trust that? Its circular logic, its hind sight, its alot of stuff, but its not the new rule of the game. We shouldn't start buying on bounces off the 18MA, but that's what this is implying. Geez, well, sorry, my soap box is crushed now.
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