Symbols that have declined the most from their 10-day high — maximum pain on recent buyers.
Max Pain: biggest decliners from 10-day high. Max Gain: biggest gainers from 10-day low. Emotional response with pain is three times stronger than with gains.
Max Pain extremes often mark reversal candidates. The 3x psychological asymmetry drives overreaction.
Max Pain: biggest decliners from 10-day high. Max Gain: biggest gainers from 10-day low. Emotional response with pain is three times stronger than with gains.
Max Pain extremes often mark reversal candidates. The 3x psychological asymmetry drives overreaction.
The Max Pain candidates are ones that have declined the most from their 10 day high, thus representing maximum pain on whoever bought the 10 day high.
Max Gain looks at gainers from the 10 day low.
Psychologically, emotional response with Pain are three times stronger than with Gains.