Mostly moves in markets happen like this because there are more sellers than buyers.
Isnt that the true simplicity of it all?
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Mostly moves in markets happen like this because there are more sellers than buyers.
Isnt that the true simplicity of it all?
Yes, but one needs to look at why there are more sellers, which is where fundamentals come in.
Fundamentals rarely have anything to do with markets.
Fundamentals do not price Tesla at $350 or bitcoin at $20K.
The market and what is going on with a company, industry, or blockchain rarely match. That is why some things are over priced, under priced, or even bubbled.
Over time, things should adjust...but sometimes they do not.
Sentiment drives market...it is a glorified casino....fear and greed are the motivators.
That is why the technicals and algorithmic trading can be success...because the behavior sprung from sentiment is often predictable.
I disagree there, because T.A. is based off of market psychology, which is based off of pack mentality and fundamentals - bitcoin hits prices due to supply and demand, which occurs because people want something, which is again based off of fundamentals.