Stocks & Commodities V. 28:11 (67-68): Spotting Price Reversals With The VIX by John Zachary

Stocks & Commodities V. 28:11 (67-68): Spotting Price Reversals With The VIX by John Zachary
Item# 221ZACHPDF
$2.95
Availability: In Stock

Product Description

Spotting Price Reversals With The VIX by John Zachary

Crowds are often wrong, particularly in the market. Use the CBOE Volatility Index to be on the right side.

The stock market can move in waves where its price action can trade into extreme price levels, resulting in waves of traders that enter or exit the market. However, it is exactly at these extreme levels that traders need to be cautious and consider short-term reversals, but crowd psychology takes over as one trader follows the next in fear of missing out on a potential move or taking a loss.

Studying market psychology is really about the study of human nature, as the market’s price action reveals to the intelligent speculator what the market is reflecting about the market participants. For example, when markets are trending upward, it reflects that they are optimistic about the future of an investment and begin accumulating it, which causes it to rise. Conversely, if the markets are reversing, then it reveals that the mass crowd of traders participating in the markets have a negative view of current prices and/or the future prospects of the market, which causes distribution, or selling, resulting in a downtrend.

At times, though, the market has moved too far, too fast in a given direction and reverses course. When large numbers of traders begin to enter the market and are driven by either fear or greed, taking the market to extremes, it sets the stage for a quick price reversal. These short-term reversals serve as both a warning and an opportunity to a trader who can spot the staging ground of such a move to occur.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order