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Re: Nuggets of Wisdom from Steve Nison's Books
When you cannot see the state of your opponent, you pretend to make a powerful attack to uncover the intention of the enemy. This concept, as related to trading, is one of the reasons a spring is so important. 57
In effect, these traders act like the aforementioned "moving shadow," testing the battlefield by entering a large order to try and break support (or resistance).For example, if a large-scale trader places a sell order as the market gets near support, their sell order may be enough to drag prices under the support area. Now, this trader, as a "moving shadow,,, will now learn about the underlying strength of the market. If the market fails to hold
under a broken support area and forms a spring, these "moving shadows,"(i.e., the sellers who were attempting to probe the market), now
have learned about the tenacity of the bulls and as a result may decide to cover their shorts. 58
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