Technicals were forecasting meltdown since 2010 I agree with 777 good people did not listened. Technicals always lag. This selling was about hedging volatility ETFs as they precipitously dropped. Best article I have read about this here. I like the tile Derivatives of Derivatives of Derivatives LOL
Did any technicals predict the melt down?
- Thread starter Saltynuts
- Start date
No it is not the only one. But even if it was slowing momentum by itself does not tell the whole story.
Momentum can slow and resume without any dramatic change in price. Happens all the time.
All talk about predicting in the markets makes me really uncomfortable. It suggests we really should do something because an event is predicted, while if an event is not predicted we are correct in doing nothing.
A trader should always be anticipating a counter-trend move. I don't say correction or crash or flash-crash or melt-down or pull-back because you can't know it definitely is one of these things until the others have been eliminated by price movement. And then its rather too late.
The simplest way to anticipate adverse price movement is with a stop-loss. Who would seriously consider holding without a stop-loss?
A trader should always be anticipating a counter-trend move. I don't say correction or crash or flash-crash or melt-down or pull-back because you can't know it definitely is one of these things until the others have been eliminated by price movement. And then its rather too late.
The simplest way to anticipate adverse price movement is with a stop-loss. Who would seriously consider holding without a stop-loss?
It's kind of impossible to exactly pinpoint trade,
But you can...more or less...be vaguely, hugely right on the general trend and happenings and potential unfoldings of the market. -- both on a daily scale, and longer term investing scale.
Ditto.
I don't believe the crashette was telegraphed other than "something like this was due and bound to happen sometime".
However... a trader could have been pretty much "on it" buy taking the technical trades as they occurred (with no expectations beyond a "normal move") and then have become favorably caught up in the decline.
A poster recently said something about "catching momentum". Well, "chasing mo in high volatility" is easier said than done. A big move is more likely one where the monemtum "catches you" rather than the other way around.
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nope. i use support and resistance. no indicator. i saw the first sign of trouble at the end of janaury on my trading account when i got stop out on majority of my position. i have a particular type of skills. i just not only made an educated guess, i back it up with my action by moving all my money out of 401k. and also on my trading account, i began shorting the market. don't hate the playa, hate the game.
Like I said it's not perfect... works for me tho
Fair enough. I hate neither the player nor the game. Happy trails, Vincent.
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IBD suggests consider selling @ top of channel, but that is small caps, many of his top trenders are semi liquid@ best. A good liquid tech uptrend/ bull market will hit the top of the channel so much, i dont sell tech like i would a weaker sector or average. Also 2017 was a bit unusual in the few/shallow corrections. NOT a prediction ,some are selling GE again @ bottom of channel .
Yeah, that happened a lot last year. Prices would reach the top of a channel and experience a really minor downmove. I'm speaking of the index futures, by the way.%%
IBD suggests consider selling @ top of channel, but that is small caps, many of his top trenders are semi liquid@ best. A good liquid tech uptrend/ bull market will hit the top of the channel so much, i dont sell tech like i would a weaker sector or average. Also 2017 was a bit unusual in the few/shallow corrections. NOT a prediction ,some are selling GE again @ bottom of channel .