Ep. 418: Everyone is a Closet Trend Follower with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Power of Sentiment
Technicians believe that trends persist in both directions because market participants act on news at different speeds. This is why bold markets often end with a buying crescendo in the riskiest securities. Risk appetites grow as an uptrend persists, it does not fade gently. Selling becomes more fierce when the market is at a 20% discount to its previous high than when it's at a 10% discount.
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