Master Don Juan
- Jan 14, 2018
- Reaction score
Predictive tools can be used against predictive outcomes and used to much effectiveness.It's exactly because the vast majority of people don't think rationally that charts are predictable - herd-like boom and bust behavior is predictable.
Also, the reason why you get the dumps after the pumps is that long term holders are selling to newcomers. Most of the newcomers also sell at a loss, but some stay in. Between the holders and the new blood price bottoms then climbs again. Rinse and repeat.
There's a theory on it. It's how six-sigma hypothesis works. I use it extensively as an equipment engineer then as process engineer and later on as a R&D engineer on semiconductor processes to get the best possible yields.
Even with the very best of equipment or resources that produces constancy in production, coupled with the best charts to guide it, there's no guarantee. Yield sometimes drops despite being in a control environment. And thinking the same applies to individual human emotions would be highly risky given its volatility.
Dude, if charts really work on bitcoins everyone will get rich but the reality as you can see is opposite.