Followers

Tuesday, February 22, 2011

How Long Does It Take For A Market To Top Out?




Take the time to study this chart that goes back over 20 years. You will notice that tops take MONTHS to form folks. MONTHS! So anyone looking for an exact top will be setting himself up for extreme frustration. As a general rule of mine, i will always assume the trend is intact until it is clearly and firmly broken either upwards to downwards and that takes MONTHS to happen.

Just imagine, how many bulls and bears will get eaten up alive in the churn trying to time such events(rare events, let's face it, major tops and bottoms are rare events).


No comments:

Blog Archive