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.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.