[SPOILER ALERT] For the answer, scroll down to the comment section.
Two charts of
IWM weekly TF.
One chart is current (as of 2/4/2023).
The other is 2008 ,up to 4 candles before the 50% drop.
Which one crashed 50%?
The conundrum: why do we assess current price action as bullish, when a similar pattern resulted in the GFC in 2008?
There are many possible answers, none of them wrong.
The one that interests me is the possibility that our bias is more extreme when we have experienced (traded) the price history. In this case it means experiencing the climb from the October 2022 lows. The alternative is basing our bias on the price history in a chart but *without* experiencing the returns themselves. For example IWM's similar price action in 2008. Any difference in sentiment would be consistent with studies showing that decisions made from experience often diverge from those based on description.
Two charts of
IWM weekly TF.One chart is current (as of 2/4/2023).
The other is 2008 ,up to 4 candles before the 50% drop.
Which one crashed 50%?
The conundrum: why do we assess current price action as bullish, when a similar pattern resulted in the GFC in 2008?
There are many possible answers, none of them wrong.
The one that interests me is the possibility that our bias is more extreme when we have experienced (traded) the price history. In this case it means experiencing the climb from the October 2022 lows. The alternative is basing our bias on the price history in a chart but *without* experiencing the returns themselves. For example IWM's similar price action in 2008. Any difference in sentiment would be consistent with studies showing that decisions made from experience often diverge from those based on description.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.