The place on a chart where the bulls come out to party - AND WHY

The SMH is the semi conductor exchange traded fund (EFT). This chart is a perfect example of the place where traders can generally count on a bull bear battle.

When price is falling, the human nature tendency is to think what's happening now will continue to happen in the near term.

All charts act and react the same way. In fact, Mrs. Market is simply running a test of an important area where it will be "show time" for a bull bear battle...

This example is a "breakup candle low" which is an important spot on all charts, all time frames where a test is normal as is a bounce, at least for a trade, or more...

This and many other concepts are discussed InsideTheNumbers LIVE and our nightly common sense market analysis videos on YouTube