Always Analyze the Crowd When Reading a Chart

  • The majority is always wrong, the market will always move against the directional opinion of current consensus.
  • When looking at a chart, always determine based on the recent history of the price, (i) what constituencies (i.e. types of traders) are in the market / on the sidelines, (ii) where did each constituency enter / exit, (iii) where are the crowd’s psychological trigger points and stop-loss levels likely set?
Go to top