Death comes to us all. Life's but a walking shadow | Do you have an explanation for how the coil works to store "energy" and then release it with a price move? In your example why does the price need to decline on the exit from the coil? Couldn't it rise on the exit as well?
On a separate topic, I have the feeling that speculators can't actually move a market unless psychologically the market is vulnerable. For instance, short selling works because become afraid the price will fall and try to beat the drop by selling thus encourage more selling. In fact, you don't even need producer selling to get a price decline going, just enough short sellers of any stripe. Commercial buyers will get out of the way because they have no incentive to buy until the price reaches a new stable low.
Thanks in advance. |
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