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Strategies & Market Trends : The Art of Investing
PICK 53.73+2.6%4:00 PM EST

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From: Sun Tzu1/21/2022 11:27:50 AM
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ajtj99
catou1

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Here's an important chart of NDX - it shows the risk adjusted NQ (main section) and the performance of NDX (right above it). This is my proprietary work, so I won't answer questions about its mechanics. But what you need to know is this: Regardless of the trend, the risk adjusted values should hover around the middle of the bollinger band. When they hit the upper or lower bands, then a short term reversal should happen almost right away (this is similar to how harmonic trading works). You can see how the tops and bottoms are marked by this process. However, this year we have been surfing the lower BB which is very unusual. And what is more, other indicators say this trend has staying power. If this picture doesn't stabilize very soon, it will begin to look like the early March 2020. Whether or not that will be a buying opportunity is for you to decide. But the current situation is not normal.

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