Each phase of an uptrend has unique factors that need strategic shifts in risk management and profit objectives. This is especially true when a security rallies to a new high that hasn't been traded in its long-term history. This scenario can build wealth quickly but requires special technical rules to capitalize on the mechanics in play.
Momentum dynamics shift when a security reaches uncharted territory. The new high print signals very favorable conditions in which there's no oversupply in the form of shareholders who need to sell at a loss or to get even. This lopsided equation can translate into rapid gains that often exceed logical price targets but can also generate unexpected behavior that encourages emotional decision-making.
Resistance disappears when a security hits an all-time high but hidden obstacles remain, ready to surprise unwary longs with reversals and shakeouts.
Read more at:
https://www.investopedia.com/articles/active-trading/051315/how-trade-stocks-hit-alltime-highs.asp
Momentum dynamics shift when a security reaches uncharted territory. The new high print signals very favorable conditions in which there's no oversupply in the form of shareholders who need to sell at a loss or to get even. This lopsided equation can translate into rapid gains that often exceed logical price targets but can also generate unexpected behavior that encourages emotional decision-making.
Resistance disappears when a security hits an all-time high but hidden obstacles remain, ready to surprise unwary longs with reversals and shakeouts.
Read more at:
https://www.investopedia.com/articles/active-trading/051315/how-trade-stocks-hit-alltime-highs.asp
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