Monday, February 23, 2009

Ultimate short selling pattern 1

The market is a place where we trade our emotions, greed and fear, you might not agree with me in this matter but it would be a lie if I say, I am an emotion free trader. Market is a place where we react to emotions and draw our behavioural pattern. But the problem is nothing stands still even human emotions are not continual patterns. Our knowledge and skills might reform our emotions or other rational/irrational behaviours. Traders who live in the era of information super highway definitely trade very differently from how traders traded in the 1900. Yes you are right we are getting very complex in our thinking. In 1900 U.S.A was a production based country now it is a service based economy, Dow Theory might not be applicable that much in today’s diversified economy but identification of market behaviour will not change and hasn’t changed.
According to Charles Dow an uptrend is when price make successive higher high and higher low and the down trend is when price make lower high and lower low.

To be continued.....

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