Have you ever watched a duck swimming around in a pond? They make it seem so effortless. And yet, if you were able to look at their feet you’d notice that their feet are going a mile-a-minute. Sometimes even when they appear to be sitting still. Their little feet are flying as fast as they can just churning water.
This is what stocks do all the time.
I’ve been watching the Q’s since the open ant they have been going up, s-l-o-w-l-y. Some may say two steps up and one step down but that’s not how I see it. I see declining directional Indexes, declining OBV-RSI, declining MACD’s, and rising momentum, rising moving averages, and a rising price. This type of action sometimes is referred to as churning the water. My friends and I refer to it as a verb “ducking” as in “The market is ducking it, again.
Editor’s note: New traders often get confused when this happens as it usually does either before a reversal or continuation of a trend. Being aware of these situations is half the battle. The other half is recognizing them so we can put them to use.
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