Everything in markets must be viewed in context. Big green candles mean very little on their own...context could be: - what caused it? - was there volume behind it? - did it break key levels? - why might it be sustainable (or not)? Bad news also means very little on its own...context could be: - how did the stock react? - did the news actually change the thesis? - has sentiment shifted? Context is what gives info meaning. Without it, your decision making is flawed. So whenever an "event" happens (news, a big move, catalyst), take a sec to observe the context surrounding it.
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