Warning is only for new Members
If you are experienced, please ignore or like to support.
The Story of Cows and Bears
The story begins when a herd of cows moves to a field full of food, the herd of cows is busy eating grass (level 1 trend) when the bears appear to chase them away, the cows run back (level 2 trend) and invite another herd of cows to drive the bears away. Due to being at a disadvantage, the cows occupy the field (level 1 trend continues), the bears, angry, call for another herd of bears to drive the two herds of cows away. Due to being at a disadvantage, the two herds of cows retreat (level 2 trend). At this point, the two herds of cows spread the news (FOMO) across the food-filled field, so chickens, ducks, goats, and rabbits (creatures without battle skills) come along to seek benefits, and thus the crowd comes to the field. Due to the overwhelming number, the two herds of bears flee into the forest in anger (continuing level 1 trend). At this point, the two herds of cows are full, so they gradually withdraw, leaving only the creatures with no fighting ability behind (TOP OF THE HILL), going deeper into the forest. Out of frustration, the bears in the forest roar, and at this point, there is no one left to protect, and the creatures without fighting ability panic, flee, and trample over each other to death.
The story is a bit long, but three lessons can be drawn:
1. DOW Theory
2. Support and Resistance
3. FOMO (where there is a crowd, it is best to steer clear).
Three critical factors determining a Trader's survival in the market.
#aitrend