By "this guy" you mean new_trader?
ROFL NO, YOU!
Jesus christ.
Prices don't rise because of indicators.
Prices don't fall because of indicators.
Prices don't fall because of Fibonacci
Prices don't rise because of horizontal lines.
Prices rise when demand > Supply.
Prices fall when Supply > Demand.
Thats it. Nothing else. If all the indicators in the world say UP, but demand < Supply prices will fall...
Each individual with demand has a reason.
Each individual supplying has a reason.
It doesn't matter what the reason is, the formulae is Demand > Supply = ^ OR Supply > Demand = V Or Supply = Demand = -
The reasons markets sometimes accelerate so fast is that when buying demand decreases, prices start to fall, as those holding shares or contracts start to supply their longs as prices fall. Supply is greater than demand, therefore fueling the downwards fall... Eventually price will reach a level where the level of individuals supplying stock and contracts is less than demand, as a lot of people have supplied their shares and contracts as prices fall already, the move up, start with as few participants as possible... Those demanding are proffesionals, playing on the greed and failure to have an appropriate stop loss areas of others... When supply runs dry, the demand of these individuals forces price upwards, as price rises, more and more get interested and DEMAND, not many people are selling at these levels as price has just reversed and supply is limited, prices rise and then the impulsive start to enter as the market has risen significantly and they don't want to lose... The MACD starts saying buy and more demand comes into the market, eventually the supply of those who bought at the lows and want to start selling their long positions will outweigh those who still want to impulsively buy the already completely rise.
As prices rise, those previously short in the fall will DEMAND to buy contracts and close their positions, further fueling the market.
Thus the cycle repeats.
Every moment due to the laws of supply and demand.
I hope that helps, i tried to deliver that nicely.
