When price is in a range why do some people buy at the top? lol

propwarrior · Jan 23, 2018

If price has been in a range for sometime why do some people insist on buying when the price is well above the average price of that range? It's just a really dumb thing to do. When these people go shopping do they actively seek out overpriced items to buy and ignore the cheaply priced items.

tomorton · Jan 23, 2018

Yes, I think its wrong too.

But I also think its wrong to buy at the bottom of a range. Or anywhere in a range. But that's just me.

propwarrior · Jan 23, 2018

tomorton said:
Yes, I think its wrong too.

But I also think its wrong to buy at the bottom of a range. Or anywhere in a range. But that's just me.

What about at the bottom of a range in a higher time frame uptrend? You still don’t like that?

tomorton · Jan 23, 2018

propwarrior said:
What about at the bottom of a range in a higher time frame uptrend? You still don’t like that?

No. I'd like to buy above the bottom of a pull-back in the higher time-frame uptrend.

zdreg · Jan 23, 2018

tomorton said:
No. I'd like to buy above the bottom of a pull-back in the higher time-frame uptrend.

price ranges like marriages don't last forever.

learner2007 · Jan 23, 2018

1. Not everybody looks at charts.
2. Some think it's going to break out on this move.
3. Some newfangled indicator tells them to buy.
4. Upcoming news will be good, so it's sure to break out.
5. The buying near the top looks so strong that it's bound to break out.
6. They don't recognize the range as being a range.
7. This is definitely the bottom of this downtrend, so they want in at any price.
8. They got a hot tip from somebody here on ET!!

tomorton · Jan 23, 2018

zdreg said:
price ranges like marriages don't last forever.

Then it won't be too hard to wait for the range to end and the trend to start.

But really, a range has a probable end, a trend doesn't. No trend will continue for ever, but isn't it better being in something that might continue for a longer time than something that will probably end after a shorter time?

propwarrior · Jan 23, 2018

zdreg said:
price ranges like marriages don't last forever.

correct. please present your argument for buying high up in a range. thanks.

propwarrior · Jan 23, 2018

learner2007 said:
1. Not everybody looks at charts.
2. Some think it's going to break out on this move.
3. Some newfangled indicator tells them to buy.
4. Upcoming news will be good, so it's sure to break out.
5. The buying near the top looks so strong that it's bound to break out.
6. They don't recognize the range as being a range.
7. They got a hot tip from somebody here on ET!!

Yeay just to confirm I didn't mention charts for example when I buy a used car I don't tend to look at charts.

viruscore1 · Jan 23, 2018

Institutional money will buy whenever they need to put money to work regardless of top or bottom. They move the markets, while retail traders act like squids.