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® “Home-Study Course” Study Manual Page 217

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are not buying now. They may be holding or waiting to buy, but they
are most likely not buying a down trending “Sector” or “Group”. It is
possible that they have sold their positions already.

This is why bullish trading “Swings” remain small until “Sectors” turn
around. Without the investor group’s money to add buoyancy to a
stock in a poor “Sector”, smaller short term traders can then cause
these stocks to sell off more dramatically by shorting the stock.
Especially if the significant money is not buying the stock at that time.

By keeping trading techniques and ideas as simple as possible, you can
quickly confirm a trade without getting bogged down with too much
information. When I look at “Groups” or “Sectors”, it does not take me
more than a few quick minutes and sometimes less to confirm a signal.

It needs to be that quick or you will never use it, especially if you are
trading intraday. You can use intraday charts for “Groups” and
“Sectors” too if you have intraday data for them.

If you are a scalper or trading under ten minutes, it becomes
impractical to view “Groups” and “Sectors” and stay focused on that
short time frame. Activity in “Groups” and “Sectors” probably won’t
be of much help under 15 minute time frame, and best used for sixty
minutes, dailies, and weekly charts.

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