After calling five trades correctly this week, The Art Of Crypto explains why pullbacks follow new highs. When price breaks a previous high, it typically retraces before the next move up. Historical examples show multi-month consolidations after all-time highs, and the speaker points to a weekly fair value gap as support.
Five out of five.
This week we ended up on a five out of five in terms of accuracy in the sense that I made five correct calls. And again, this start. This all started with the weekly chart where I was like, okay, there's that weekly fair value gap. So I wouldn't be surprised if Price were to retrace. Now this also comes from every time when you take out a previous high, you always kind of go for a retrace, especially if it's a key high. For example, this is when the previous all time high happened. You went through a three month retracement period. Pretty much once you took out, once you formed the new all time high, you also started going into consolidation, slash retracement. Now, when Price actually took out this range high, for example, you went through a bit of a retracement. I'm not saying that it will always, you know, have a retracement, but what's important to understand is that every time, like the markets move from periods of high volatility to low volatility. Either that or you can treat the markets as okay, after every impulse move, you tend to retrace before the next impulse move.
