I'm fortunate to have a boss who majored & mastered in finance and thesis on use of lagging indicators such as RSI, MACD, Stoch etc. and day trader of 20 years. Yesterday, we had a discussion about TA in general. He said the most important factors are volume and patterns. I hadn't really considered regular time volume as important before so I decided to compare the volume during the previous (2015) bear market bottom with the present (assumed) bear market bottom.
As we can see, logically the selling (red) volume decreases as the sellers dry up. Then the price begins to get some traction and start another glorious bull run. I have copied the % of the angle of the decrease in volume from 2015 just as a template, the point is: the volume decreases. Also, IF the bottom HAS been made, it was 1 month (last bear was 13 months so 1 month = 7.69%) shorter than the previous bear market so I have also reduced the length of the estimated bottom accordingly.
This is NOT meant to be a precise prediction or financial advice, of course of course of course. Just an interesting observation.
I think/hope this makes sense, if not, leave comments and discussions below.
Happy new year to all!
As we can see, logically the selling (red) volume decreases as the sellers dry up. Then the price begins to get some traction and start another glorious bull run. I have copied the % of the angle of the decrease in volume from 2015 just as a template, the point is: the volume decreases. Also, IF the bottom HAS been made, it was 1 month (last bear was 13 months so 1 month = 7.69%) shorter than the previous bear market so I have also reduced the length of the estimated bottom accordingly.
This is NOT meant to be a precise prediction or financial advice, of course of course of course. Just an interesting observation.
I think/hope this makes sense, if not, leave comments and discussions below.
Happy new year to all!