| What stops a trend? There are a litany of answers that can fill in here, and many of them are ‘right’ to some degree or have at least some pertinence, but if you really get down to brass tacks – what is it that kills a trend? At it’s core, all trends stop (and all prices are driven) for two very simple but related reasons: New buyers/sellers or a lack thereof. That’s really it.
Much of financial media is focused on the inputs compelling those forces, but in it’s most simplistic form – price action is really just driven by sentiment. It’s the reasons driving that sentiment that has the world transfixed on the news. If something really bad happens, a bunch of new sellers will often want to jump in the market and this can drive prices lower...............................................Full Article: Source
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