Observe the smart money. Watch what the institutional investors are doing. Are they buying or selling? Institutions are pension funds, mutual funds, insurance companies, banks, hedge funds, and other investors. Unless you are Bill Gates, you are not the competition of a large institution. If a lot of sell orders hit the desks of large banks, who do you think will get out first: the hedge funds that generate millions in fees or your small trade? Institutions can drive prices in either direction rather quickly.