Why Prices Peak or Bottom

Prices peak when there are no more buyers willing to buy at that point in time. Sellers have to offer lower prices and the price falls. When the price shoots up more than normal, it would soon run out of buyers and would start to drop. When the price plateaus and starts testing the lower end of its fluctuation range, there is a chance that buyers are becoming short. Sell before the price drops.

2. Prices bottom when there are no more sellers willing to sell at that point in time. Buyers have to bid highers prices and the price rises. When the price drops fast and more than normal, it would soon run out of sellers and the price would start to rise again. When the price falls and plateaus, wait until the price makes a major move upwards before buying.

3. Prices move sideways when the strength of buyers and sellers are about equal. Chances are the price would continue on its trend, either moving up or down.