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As there is lost motion in every kind of machinery, so there is lost motion in the stock market due to momentum, which drives a stock slightly above or be-low a Resistance Level. The average lost motion is 1-7/8 points.
When a stock is very active and advances or declines fast on heavy volume, it will often go from 1-7/8 points above a half-way point or other strong Resistance Level and not go 3 points. The same rule applies on a decline. It will often pass an important Resistance Point by 1-7/8 points but not go 3 full points beyond it.
This is the same rule that applies to a gravity center in anything. If we could bore a hole thru the earth and then drop a ball, momentum would carry it beyond the gravity center, but when it slowed down it would finally settle on the exact center. This is the way stocks act around these important centers.
《股票教程》原著,第265页 (版本:本论坛置顶帖) |
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