understanding crowd - IV

"Strength of the crowd is in its numbers"

As a corollary, when two crowds of differing opinions come face to face, the bigger crowd decides the resultant!

As another corollary, the larger the crowd the longer it survives before getting scuttled!

A rally is nothing but crowd behaviour at its finest!

So, applying the above logic to a rally

the bull camp is the defending crowd

the bear camp is the offensive crowd

when both these crowds come face to face

1) the bigger crowd decides the direction of the market

2) the larger the following (volumes) of the winner crowd, the longer the rally sustains

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Also, the speed of a correction is directly proportional to the speed of dispersing of the tired crowd and the speed of increase in the following of the challenger crowd.

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(jointly written with Ashish Dewett)

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(to be continued)