
Cotton ,
By weak I mean the price action ..When there is no more buyer's of stock then the lack of interest is shown by the fall in price.. The figure 3 days is only a guidline and not a benchmarket by any means.. So if you had a stock which had a good run for 6 days ( for the sake of argument ) then you wait for the close of the 7th day .. We need to see sellers moving in ..
Market is a social system and simply can't be modeled with mathematics or simple rules..
I feel most traders after losing losts and lots of $$$ they eventually come to a simple conclusion that Trading is simple and profitable if one relies on his common sence ..
PS:_ I have included a simple research work on the probability of How often DOw been up N times in a row which I found intresting ..( it is work of a statistician called Peroz) |