Here I was just trying to decode the pattern of this indicator called Awesome Indicator.
In the above chart, I have used Awesome Indicator to gauge the market’s direction in coming days, weeks. As of now, yes it shows negative sentiment going ahead. As we all know market is supreme, regardless our assumptions, calculations etc.
Here, we can see two types of formation in this indicator in downside market.
1-2-3-4 : Linear formation
1 - 1227 points fall (11% fall from previous high)
2 - 1160 points fall (11.5% fall from previous high)
3 - 1281 points fall (8.5% fall from previous high)
4 - 388 points fall (2% fall from previous high)
When there is linear pattern formation, we can see either market tends to consolidate (4) or move downward with zig-zag (1,3), where the correction/retracement was by 8-12% (1,2,3).
a-b-c : Curve type or semi-circular.
a – 1747 points fall (15% fall from previous high)
b – 4919 points fall (40% fall from previous high)
c – 1619 points fall * (9% fall from previous high) – till present date
But when there is curve or semi-circular pattern, we can see market has moved downward very aggressively, where the the retracement/correction has been made by 15% (a) and more (b).
Now, the indicator has formed the curve or semi-circular pattern (c), where the market has corrected by around 9% from its high. Going forward, market seems to give some more correction. But till what levels??
Market is once again giving a wonderful opportunity for investors. One should sit in cash and start accumulating quality stocks going ahead, with long term investment perspective.
The anticipated fall may or may not come, as again reiterating Mr. Market is supreme.
Let me know your thoughts.
Happy weekend and happy investing (though after some more time).
In the above chart, I have used Awesome Indicator to gauge the market’s direction in coming days, weeks. As of now, yes it shows negative sentiment going ahead. As we all know market is supreme, regardless our assumptions, calculations etc.
Here, we can see two types of formation in this indicator in downside market.
1-2-3-4 : Linear formation
1 - 1227 points fall (11% fall from previous high)
2 - 1160 points fall (11.5% fall from previous high)
3 - 1281 points fall (8.5% fall from previous high)
4 - 388 points fall (2% fall from previous high)
When there is linear pattern formation, we can see either market tends to consolidate (4) or move downward with zig-zag (1,3), where the correction/retracement was by 8-12% (1,2,3).
a-b-c : Curve type or semi-circular.
a – 1747 points fall (15% fall from previous high)
b – 4919 points fall (40% fall from previous high)
c – 1619 points fall * (9% fall from previous high) – till present date
But when there is curve or semi-circular pattern, we can see market has moved downward very aggressively, where the the retracement/correction has been made by 15% (a) and more (b).
Now, the indicator has formed the curve or semi-circular pattern (c), where the market has corrected by around 9% from its high. Going forward, market seems to give some more correction. But till what levels??
Market is once again giving a wonderful opportunity for investors. One should sit in cash and start accumulating quality stocks going ahead, with long term investment perspective.
The anticipated fall may or may not come, as again reiterating Mr. Market is supreme.
Let me know your thoughts.
Happy weekend and happy investing (though after some more time).