easy · Volume Spread Analysis wyckoff-phases-schematics

What is the primary psychological mechanism professionals exploit when they 'mark down' a market on bad news after a long period of accumulation?

  1. The fear of loss, which compels weak holders to sell their positions into professional buy orders.
  2. The fear of missing out, which attracts new short sellers who will later be forced to cover at higher prices.
  3. Indifference, where professionals wait for the news to settle before taking any further action in the market.
  4. Greed, which encourages retail traders to 'buy the dip' despite the negative news environment.

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