Traders have a memory of one day. Yesterday the market advanced upward going into the last 30 minutes of the Energy Market. Since the Energy Market was strong today, traders probably were hoping that this afternoon would be a repeat of yesterday afternoon. The market tends to show its hand either just before or just after 1400 ET. Today the market started down just before 1400 ET, which convinced disappointed traders to liquidate long positions. The bulls didn't completely give up as they advanced the last 30 minutes.
Charles
Thanks for your updates each day
ReplyDeleteYour blog helps familiarize myself with these patterns
Hi Jim,
ReplyDeleteSome trivia about memory from "Brain Rules" by John Medina.
"Tests performed years ago showed that people could remember more than 2,500 pictures with at least 90 percent accuracy several days post-exposure, even though subjects saw each picture for about 10 seconds. Accuracy rates a year later still hovered around 63 percent. ...
If information is presented orally, people remember about 10 percent, tested 72 hours after exposure. That figure goes up to 65 percent if you add a picture."
The main reason why a mark up and post a lot of charts.
Charles