Hi Delta,
Ok the Rainbow is comprised of many many many moving averages.
All the moving averages (MA's) are all different time frames that follow the same path - or one path - of price action and hence price direction.
Think of all these moving averages as a separate piece that make up an orchestra. Each their own instrument but when put together create a pattern, or sequence of patterns that form a trend. These averages just follow that trend.
As time progresses and a trend emerges, then these averages just mathematically follow suit.
But the beauty of the rainbow is that you can at a quick glance, see all time frames and the direction in which these averages are heading.
At the moment the average price from a 1 day average to a 100 day average are heading up. So the probability of a continuing trend is still very strong.
Once a trend is established then its a lot harder to break something that has already got a foothold on the general herd mentality. And herd mentality creates a trend. It human nature to trend. Humans do not like confrontation and prefer over time, unity. Thats how financial markets tend to operate since the Roman empire.
I like the VPG story to date.
I hope this helps.
Cheers
Babylon
- Forums
- ASX - By Stock
- VPG
- vpg rainbow effect
vpg rainbow effect, page-6
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add VPG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.79 |
Change
0.000(0.00%) |
Mkt cap ! n/a |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |