As for the pond fishing play, it is based on the assumption shares are accumulated during 6 months in order to sell them in a bought (manipulated) run.
Basically the high candle spikes come from emotional exhaustion. If the timing is correct, the darkmaster has run out of accumulated shares at the same time. If not the run will continue. If timing is correct they will have NO shares left to sell and the greedy emotional retail herd will NOT part with any. (Long & Strong LOL).
So if everyone wants to buy and no one is selling shares higher (the darkmaster) the price stops climbing. Once that starts a red day will follow. And the emotion takes a reversal creating the retrace.
Remember, all this is speculation from under my tin foil hat. But I've seen the pattern so many times I teach it and trade it.
The key is the high candle spike is a retail exhaustion signal, but the red day following signals the darkmaster has no more shares to sell higher. That's the key, the red day after retail exhaustion.
As for the over all market I use the S&P index. It contains the largest & broadest sampling of listed companies and thus the best general over all feeling in the market.
I use a "Rule of Thumb" to evaluate short term market action.
Rule of Thumb" If the $SPX reaches 6% above the 50 day SMA, expect an correction to the 50 day. If it reaches 8% the correction will happen.
So all I do is look at this chart. Right now a correction is in action. Once it touches or close to it, the 50 day, a reversal should start.
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