Hello again..
As we said previously Long term traders can push the price out of the range that short term trades established,..in another word breakouts through any resistant or support levels can only be done when long term traders intervent ,or let me put it this way when long term traders decide to compete with short term traders,..so if the price was on a resistant level for example and the long term traders see that the prices will go further higher they will buy at a hi level in another word they will buy hi and break through that resistant. that would attract more buyers to follow through and buy so we will see an
upword run,..and vice versa on a downward run
now the question is how would we predict the long term traders intervetion
the answer is VALUE
if the long term traders see the recent price is undervalue then they will drive the market up with a bullish atittude to shift the price to a new value area and so if the see the market is over valued they will push the price down with bearish atittude.//so the shift to lower value area
and why would they do that? coz of the fundemental reasons like inflation or changes on interest rate or hi / low CPI in another word they will discount any economic data or react according to any MME
MME means MARKET MOVER EVENTS
we will leave it here today we will continue later on
Thanks for reading hope u finde it usefull
ScreamingHawk