Purekiller
Recruit
- Messages
- 133
A wise guy said: “Buy rumors, sell facts”.
News creates expectations or changes them. Traders and investors drive prices based on expectations. If they change, then trends change.
Technical things are secondary, they take into account past performance but not future expectations of some events. This is why fundamentals can break technical patterns and make signals fake.
However, most of the trend reversals happen after a certain background is formed. The only condition to see is to look at a wider picture on long-term charts. You may trade with any expiration time, but you need to keep in mind the long-term technical and fundamental sentiment.
News creates expectations or changes them. Traders and investors drive prices based on expectations. If they change, then trends change.
Technical things are secondary, they take into account past performance but not future expectations of some events. This is why fundamentals can break technical patterns and make signals fake.
However, most of the trend reversals happen after a certain background is formed. The only condition to see is to look at a wider picture on long-term charts. You may trade with any expiration time, but you need to keep in mind the long-term technical and fundamental sentiment.