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