With the recent big falls in the major indices I feel we may be at one of those times when a lot of people throw up their hands in desperation and give up trading saying ‘I didn’t see that coming’ whereas those who have been putting in the time and effort will be looking at the charts and saying ‘That’s interesting, this is probably a good buying opportunity’.
No doubt a tough time for those not prepared BUT there are ways to be aware a downturn is coming although predicting the depth of downturn not so easy . Patterns exist in market conditions that give a headsup that a downturn probability is increasing , you just have to look real hard. NQ as example here , big prize for those who can reverse engineer this … the lows are indicated here but the highs are just inverted signal
The point is dont give up easily , once you know the problem solutions become easier , what is a commonality in market swing highs ? how can we define it mathematically? what is the efficacy of the setup and is it exploitable . System development is all about answering the questions , work out the question that need to be asked goes a long way to that end
