Breakaways do function to leave the most people behind in a shocked and confused state. Most people need to see confirmation first that the trend has changed before they believe it and act. Some people are traveling and won't even hear about it until we are way up.
This all favors those who act quickly and recognize what's happening before the momentum traders come in. This is why technical analysis is effective in recognizing what's happening.
Topic: The "Holiday Effect" can work to magnify both Greed and Fear. (Read 812 times)
Memorial Day in the USA is a stay-at-home-and-BBQ day. I am sure some people go camping and stuff. At this point in time, most families are saving for a summer vacation. Memorial Day is a somber day as Americans reflect upon the sacrifices made by the people in uniform.
July 2011 was an exciting time since the first big BTC bubble had recently burst. The 4th of July weekend was a nightmare for Bullish traders because the prices kept falling....and falling.
I noticed something which could be called The "Holiday Effect".
Some holidays are slow, this applies to when prices are really moving:
*People are traveling, arriving, spending time with family etc.
*By the time they get a chance to check the market (for more than a brief few seconds) dramatic changes in price have occurred.
*People who are prone to emotional reactions/hasty decisions might be even more extreme since they are surprised and concerned about not being able to keep an eye on the market.
*Traders who normally remain calm might finally lose control and do something extreme.
In 2011, the result was "endless selling" as travelers checked in and just kept selling.
The last ~5 hours have seen a very powerful up move for BTC.
Are we seeing the Bullish side of the "Holiday Effect" as Americans traveling this weekend finally check in online (and come back from the nightclubs) to find prices up, up, up....and they do not want to miss out?
Have a fun weekend.
I noticed something which could be called The "Holiday Effect".
Some holidays are slow, this applies to when prices are really moving:
*People are traveling, arriving, spending time with family etc.
*By the time they get a chance to check the market (for more than a brief few seconds) dramatic changes in price have occurred.
*People who are prone to emotional reactions/hasty decisions might be even more extreme since they are surprised and concerned about not being able to keep an eye on the market.
*Traders who normally remain calm might finally lose control and do something extreme.
In 2011, the result was "endless selling" as travelers checked in and just kept selling.
The last ~5 hours have seen a very powerful up move for BTC.
Are we seeing the Bullish side of the "Holiday Effect" as Americans traveling this weekend finally check in online (and come back from the nightclubs) to find prices up, up, up....and they do not want to miss out?
Have a fun weekend.
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