Financial market is an amazing place to draw a similarity between what we see in real life situations and what we see in the market. One of the things we see all the time in financial market: Relay race
How a market falls in a love with a sector for some strange reason and the leading stock of that sector makes a big move and then baton is passed on to the next one and then the next one. Why does that happen? Human behaviour Oops I missed the obvious one and so let me chase the next idea in the sector.
The thinking looks pretty straightforward:
A stock has made a big move.
B stock belonging to the sector is making a move
C stock belonging to the sector will make a move.
And then everybody starts chasing B and C and so even though you miss A - you can make up that missed opportunity by chasing B and C. I have shared this example many times under Science of Stock Price Action Premium Case Study. Here's another sector where this relay race is in progress. Read the complete Case Study
If you find Price Action fascinating - then Science of Stock Price is a good place to start.
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Science of Stock Price Action is a training course designed to help you understand the price action mechanics with Live case studies and real life applications. It's not a recommendation service but help one understand this fascinating world of how price action results in a sustained trend.
One of the objectives of writing stateofthemarket.net blog posts is to demonstrate how price action works in a very simplistic manner. I have been writing about markets for years now and have developed a unique way of looking at the market. I have developed a course material if you are interested in learning about this whole space which comprises of the following
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers