SPX'S Bears chilling out for what might NOT happen contrary theo
What is the theory of contrary opinion?
The theory of contrary opinion, otherwise known as contrarian investing, is a psychological theory applied to trading, according to which, when most people have the same opinion about what the market is going to do, there is a high probability that it moves in the opposite direction to that expected by that mass of people.
In other words, the theory of contrary opinion in trading tries to anticipate a change in the trend in the price of a financial asset, even though market sentiment or technical and/or fundamental indicators indicate a contrary position.
Due to the characteristics of trading, this change of direction will be more intense at the beginning of the movement. Traders usually limit losses by placing a stop loss. Therefore, when there is a change in trend, these orders begin to jump and a domino effect occurs that sinks or triggers the value of the financial asset.
Consequently, the potential loss if the trend continues is small compared to the potential benefit of speculating on a possible change in direction.
The theory of contrary opinion, otherwise known as contrarian investing, is a psychological theory applied to trading, according to which, when most people have the same opinion about what the market is going to do, there is a high probability that it moves in the opposite direction to that expected by that mass of people.
In other words, the theory of contrary opinion in trading tries to anticipate a change in the trend in the price of a financial asset, even though market sentiment or technical and/or fundamental indicators indicate a contrary position.
Due to the characteristics of trading, this change of direction will be more intense at the beginning of the movement. Traders usually limit losses by placing a stop loss. Therefore, when there is a change in trend, these orders begin to jump and a domino effect occurs that sinks or triggers the value of the financial asset.
Consequently, the potential loss if the trend continues is small compared to the potential benefit of speculating on a possible change in direction.
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We are reaching 90% retracements which give more odds to the bullish move over bearish one !
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DJI is supporting this, all else being equal. Believe it or not !
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All else being equal no catalyst to go dawn as of this very moment ! Trend is up in full gear !
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Up in full gear :-)
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****** Past performance is no guarantee of future results***
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****** Past performance is no guarantee of future results***
twitter.com/samitrading1