Energy builds up in a 'Wyckoff Cause', like a weight building building up on one end of the see saw, then the balance moves and we have the resulting swing and effect.
Wyckoff: The Law of Cause and Effect
In order for there to be an effect (change in price), there needs to be a cause. The effect will be in direct proportion to that cause. Best price moves occur when there has been enough time to allow for a period of accumulation or distribution (or in other words a cause).
If the trend does break down a 30% plus move down is very likely. The NYSE is very Wyckoff friendly with the law of cause and effect.
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Investing Quote...
"Being in the market at all times is not the key to profits. Being in the market when there is a clear, unconfused technical signal, and the trader's judgment is not swayed by emotion, is the method for trading success." ~ Richard D Wyckoff
"Successful speculation requires staying on top of changes in industries and companies that either create new industries or improve on existing industries. The majority of your profits will come from these two ... The shrewdest traders throughout history all adapted the skill of reactionary change, as the market constantly presents new and different opportunities." ~ Bernard Baruch
"Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception." ~ George Soros
"October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February." ~ Mark Twain
"By failing to prepare, you are preparing to fail." ~ Benjamin Franklin
