School's never out....

N

Nicodemus

Every time I think there can't possibly be another trading maxim that I have not heard before I stumble across one. I've stated before that I learned more from a few comments by LBR than a lot of the books I've read. It's mindblowing to me , the amount of power that a simple sentence can contain. I just finished a short article by Borsellino in which he said:
"One of the maxims of trading is that the market usually trades back to levels of high activity."
This may be an old maxim but I have not seen it before and it blew me away. I hope it does the same for someone else.
 
Stated so eloquently I agree. When you think about it, most clean advances or declines retrace some amount to an area of congestion which are prior areas of support/resistance which the markets always seem to have to retest. In those areas of high activity you end up with more activity & congestion before another move commences. Interesting none-the-less.


 
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