2 minute chart showed a bearish pattern in histogram, MACD crossed centreline, you can go short whilst there is no momentum, perhaps there won't be one at all, sometimes though, just like now, you reconfirm to yourself that technical based trading does work, we just don't know the levels of hysteria that might be present in the market, all we get is probability. I don't really care what happened, what's more important is could that have been foreseen.
ImE whenever there is a bearish pattern and price keeps on trading below daily pivot, then that shows potential weakness in market and at times leads to very nice vola.
"...It never ceases to strike me as ironic, but in speculation all roads lead to emotion. We silly humans, and I too am personally a huge offender, spend tens of billions of dollars a year trying to figure out which way the markets will meander next. Whole corporations, incredibly intelligent people, and countless high-end computer time is dedicated to trying to forecast the markets as if they were mechanical and inherently predictable like some giant grandfather clock.
Yet, it is not fundamental realities that drive short-term market movements, but pure emotion. Warren Buffett continually declares that one doesnât have to be a rocket scientist to be blessed with success in the markets, all one has to do is understand herd psychology and investor emotion!
For speculators, emotion is both the boon and bane of their very existences. Everyone elseâs emotions are wonderful for speculators because they create gaping short-term market inefficiencies that speculators can exploit for great profits. Emotion is a sharp double-edged sword though. While speculators love othersâ emotional trading, if they emotionally trade themselves they are doomed. Greed and fear are lethal for an individual speculator if they are allowed to run free within the speculatorâs own heart..."
