Are we seeing 2018 history repeating again ?
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Based on this article, the experts are predicting that based on the RSI indicator, the 2018 Jan history will repeats in the current situation.
Since I do not rely on RSI indicators, so I cannot comment how accurate it is as I had mixed results in the past and it clouds my charting skills.
Based on trend line analysis, the price action is still sitting on a nice bullish trend. For it to repeat what 2018 Jan does, it has to breakdown violently with a near 12% drop to reach the same magnitude.
Is that possible ? Yes it is since we cannot predict how the market moves.
Well, it really depends on what type of trader you are. If you are into intraday movements, perhaps you would be actively monitoring the candles to see if any reversal patterns (eg. pin bar, bearish engulfing candle, doji pattern, gap down, etc) and get ready to short down.
For those who are long term bulls, there is really nothing for you to do until the trend says so.
I am of the opinion so long the bull trend stays intact, any correction is a buying opportunity.
Shorting on a counter-trend strategy (e.g.. Tesla) can prove fatal if you are not nimble enough to get in fast and get out faster! Some may like such adrenaline pump and finds it exciting but I have surpassed that stage and prefer a more consistent approach. Plus, I really can't afford the time to wait at the monitor to see the price action, it is crazy!
So, the next time you read any sensational news like this, do not jump into a buy or sell but rationalise what the experts say. Is your trading style same as theirs? What is your time frame in trading/investing in this index? What is your objective to buy or sell ? Do you have a workable, proven strategy? Or are you simply , blindly following experts , hoping they are right and make you a quick buck ?
Trade safely, always use a SL, apply risk and capital management appropriately. GBU
Since I do not rely on RSI indicators, so I cannot comment how accurate it is as I had mixed results in the past and it clouds my charting skills.
Based on trend line analysis, the price action is still sitting on a nice bullish trend. For it to repeat what 2018 Jan does, it has to breakdown violently with a near 12% drop to reach the same magnitude.
Is that possible ? Yes it is since we cannot predict how the market moves.
Well, it really depends on what type of trader you are. If you are into intraday movements, perhaps you would be actively monitoring the candles to see if any reversal patterns (eg. pin bar, bearish engulfing candle, doji pattern, gap down, etc) and get ready to short down.
For those who are long term bulls, there is really nothing for you to do until the trend says so.
I am of the opinion so long the bull trend stays intact, any correction is a buying opportunity.
Shorting on a counter-trend strategy (e.g.. Tesla) can prove fatal if you are not nimble enough to get in fast and get out faster! Some may like such adrenaline pump and finds it exciting but I have surpassed that stage and prefer a more consistent approach. Plus, I really can't afford the time to wait at the monitor to see the price action, it is crazy!
So, the next time you read any sensational news like this, do not jump into a buy or sell but rationalise what the experts say. Is your trading style same as theirs? What is your time frame in trading/investing in this index? What is your objective to buy or sell ? Do you have a workable, proven strategy? Or are you simply , blindly following experts , hoping they are right and make you a quick buck ?
Trade safely, always use a SL, apply risk and capital management appropriately. GBU
Nota
With each day, the US indices, S&P500, Nasdaq and DJ breaking new record highs, the tipping point to fall seems nearer. DJ seems range bound now at 29348, if it can't break above this level, then we can expect a bearish engulfing candle to ensue. So long as it does not break down from the bullish trend line, this correction could be another good buying opportunity.
Nota
marketwatch.com/story/us-stock-futures-sink-on-growing-concern-of-outbreaks-economic-impact-2020-02-23?mod=mw_latestnewsLooking at the chart, there remains a possibility that the bullish trend may be broken down. Today , we shall likely see some pullback on the daily chart and it may continue to head south thereafter.
Nota
It looks like this prediction has come true. Look at the fast and furious sell down. 2 years ago, it was half as ferocious compared to the current red candle. Again, I emphasised, in a heavy sell down, there may not be a pullback and the price can continue to head south. Be cautious now.Nota
the challenge with charting is you may get lost in the forest. That means, you have one too many and forget to follow through.haha.
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