Penetrations

He spoke about the line.. now one more..
Who fucking drilled you, that real breakdowns should be made on volumes?

Throw away all these fuck books already… 
I tell all this at my seminars..
On volumes, most often there are only false breaks.. or without much potential..

Simple logic:
Imagine Consolidation… about a week.. and even more. Saw saw Saw saw.. everyone who wanted to buy – bought, everyone who wanted to short – shortly.

Further… it turns out that for example, there are more bulls than bears.. Ie. with the current balance there are still those, who want to buy – and the one who wants to sell is no longer there. There is an exit from the consolidation upwards.. So? And the exits from consolidations are always? Right.. always accompanied by powerful impulses..

So explain to me, Why should those who bought in the database and see, that right now there will be a powerful impulse in his direction to fix profit immediately upon breaking through, and not increase profits?? Why breakdown (and hence the very strength of the impulse) used as a surge in liquidity to dump securities? Because buyers know it's fucking awesome.. and there is no potential there.. which means the breakdown is false. Hence, large volumes arise..

And if the bulls are confident in their strength – why fix just barely emerging profit? You need to incubate profits.. which means there will be no sellers when it breaks through, which means that the market will squeeze up without large transactions… and will continue to grow until then, until the masses want to fix their case.. and someone is wrong.. Then a rebalance of forces will take place.. and volumes will appear, which will extinguish all impulse.. and a completely different story will begin..

  Is Austerity the Road to Ruin? James Montier July 2010
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