Larger Corrections- Best Opportunities for Buyers
Its rightly said that “Buy when everybody else is selling in Panic and Sell when everybody else is buying in greed”.
There are a few observations that I would like to share in this chart.
⚡Market is rallying >50% from its previous peak points. As it broke A, it rallied +50% to point B. Same it did at point C and presently we are 50% above point C.
⚡Secondly, Market has been making another peak at this 50% level and corrects for 35% or higher. It corrected 40% in 2011, 35% in 2016 and 50% in 2020.
⚡Thirdly, market has been riding higher in an uptrend channel in this log chart and currently grinding near the resistance line. Last time it did the same in 2018 and 2019 before correction.
⚡Fourthly, market tests the previous peak point resistance in its bearish phase. Like it tested A and B in the previous corrections. This time the point is C, which looks too deep as of now😜
I am expecting three scenarios. Trust me, it's always prudent to look for different scenarios🧐 and then prepare and act accordingly.
🚀The first scenario is that market breaks the resistance line of the channel and then go overbought or Climactic and then a larger correction begins. If one is very bullish and expecting this to happen, then trailing would be the best strategy for him/her. Also Exit 2/3rd if there is climactic action and trail tight the rest.
🚀The second scenario is the market corrects slowly and gradually from near the current levels, makes a healthy correction of 35% or so and then resumes higher. If one is expecting this scenario, then booking partial profits and trailing the rest would be a wise decision.
🚀Thirdly, market corrects sharply 40-50% from this level and then resumes higher. This would be a bonus for buyers. Booking partial and tight trailing the rest should work here too.
In all these scenarios one can expect a test of point C or lower for fresh investments.
I just hope this idea would help some of you to make wiser investment decisions. The others will surely learn something.
Do boost🚀 and comment💬 for more ideas in future.
Good luck👍
There are a few observations that I would like to share in this chart.
⚡Market is rallying >50% from its previous peak points. As it broke A, it rallied +50% to point B. Same it did at point C and presently we are 50% above point C.
⚡Secondly, Market has been making another peak at this 50% level and corrects for 35% or higher. It corrected 40% in 2011, 35% in 2016 and 50% in 2020.
⚡Thirdly, market has been riding higher in an uptrend channel in this log chart and currently grinding near the resistance line. Last time it did the same in 2018 and 2019 before correction.
⚡Fourthly, market tests the previous peak point resistance in its bearish phase. Like it tested A and B in the previous corrections. This time the point is C, which looks too deep as of now😜
I am expecting three scenarios. Trust me, it's always prudent to look for different scenarios🧐 and then prepare and act accordingly.
🚀The first scenario is that market breaks the resistance line of the channel and then go overbought or Climactic and then a larger correction begins. If one is very bullish and expecting this to happen, then trailing would be the best strategy for him/her. Also Exit 2/3rd if there is climactic action and trail tight the rest.
🚀The second scenario is the market corrects slowly and gradually from near the current levels, makes a healthy correction of 35% or so and then resumes higher. If one is expecting this scenario, then booking partial profits and trailing the rest would be a wise decision.
🚀Thirdly, market corrects sharply 40-50% from this level and then resumes higher. This would be a bonus for buyers. Booking partial and tight trailing the rest should work here too.
In all these scenarios one can expect a test of point C or lower for fresh investments.
I just hope this idea would help some of you to make wiser investment decisions. The others will surely learn something.
Do boost🚀 and comment💬 for more ideas in future.
Good luck👍
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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