Wave 2 is known for being a shakeout period. After the initial enthusiasm of Wave 1, there's a pullback that can shake out some of the less committed investors or those who got in too early. The market sentiment during this wave can be one of doubt, confusion, or reevaluation rather than belief.
Price Action: During Wave 2, prices retreat from the highs set in Wave 1, often leading to a scenario where investors question the asset's upward trajectory. This wave can involve significant retracement but should not go below the start of Wave 1 in an ideal scenario.
Market Stage During Wave 2:
Doubt or Reassessment: Rather than belief, the market stage during Wave 2 would be characterized by:
Doubt: Investors might doubt if the initial move was a false start, leading to selling or a hesitancy to buy more.
Reassessment: This is a time where the market might be reevaluating the asset's value, fundamentals, or the sustainability of the previous upward move.
Price Action: During Wave 2, prices retreat from the highs set in Wave 1, often leading to a scenario where investors question the asset's upward trajectory. This wave can involve significant retracement but should not go below the start of Wave 1 in an ideal scenario.
Market Stage During Wave 2:
Doubt or Reassessment: Rather than belief, the market stage during Wave 2 would be characterized by:
Doubt: Investors might doubt if the initial move was a false start, leading to selling or a hesitancy to buy more.
Reassessment: This is a time where the market might be reevaluating the asset's value, fundamentals, or the sustainability of the previous upward move.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.