II.8. The concept of “flat”.

A sideways trend or “flat” indicates a price movement between two horizontal levels. When the market is sideways for a long time and seems sluggish, this can be deceptive, because at this time someone can either gain a position, as in Figure 35, where we see how the Central Bank is gaining a position for further powerful upward movement. There may also be a reverse situation, when someone “merges” a position at the maximum price, as in Fig.41. After a long disposal of Yandex shares, a major player quits the game and the market collapses down.

Рис.41. Getting rid of Yandex shares in a long flat.

Leave a Reply