TRENDS

TRENDS
Greedy crowd ignited a powerful rally in December AMGN. Note embedded five waves, typical of soaring uptrends. The 3 on 3 identifies the most dynamic dynamics are expected sharp price moves.

As they prepare to exit, the trend suddenly reawakens and price again surges. During this final 5th wave, the crowd loses good reasoning. Both parabolic moves and aborted rallies occur here with great frequency. Survival through the last sharp countertrend adds an unhealthy sense of invulnerability in the crowd mechanics. Movement becomes unpredictable and the uptrend ends suddenly just as the last greedy participant jumps in.