"Now let us deepen our understanding of when the market will be ready for us o
act. The market itself gives us the clues that tell us what to do. All that we must
do to learn is listen to it.

IT IS All ABOUT MISDIRECTION

Things are not always what they seem. If they were, it would be easy for anyone to
have a look at the market and to make money. This is not the case. You first must
know where to look.The market will very often go against public opinion. This is because people
are so enthusiastic about the market's immediate behavior that they enter a kind of
hypnotic trance.
In a bull market, no one wants to be told about reversals or the end of the trend.
They all want to be where the money is being made. This is fme as long as the
market maintains its trend. The problem with this approach is that enthusiasm takes
a very long time to build. It accumulates in a slow, snowballing motion as a result
of stories of other people's success in the market.
When knowledge of the successful buyers is widespread and the public is enthu-
siastic, it is already too late and the market will reverse. Why'? Because the all-
important buying has already taken place. In fact, very soon the only thing that
will matter is selling. The public, fully ignorant of this, believes that it is at the
beginning of a move that will last for a long, long time. This is no longer true when
the public is fully aware that a bull market is underway.
Why is there such public ignorance'? Simple! The answer is 'misdirection.' The
public is misdirected by opinion. There is an abysmal difference between 'opinion'
and 'knowledge.'
'Opinion' is what you hear around you, what you are told by someone, whether
it is the media, a professional, or whoever. It does not really matter who is telling"

From Pilepe Tudela's book, "The Secret Code of Japanese Candlesticks".