Well, I would like to make a mission statement, so nobody missunderstands my goals: I want to demonstrate that the markets are not random and it is possible to predict them with a high success ratio. Not for everyone and not all the time. Repetitious patterns emerge regularly and one can take advantage of them. The same patterns and rules work across different markets and different timeframes. I also believe in the Keep It Simple Stupid (KISS) principle thus less charts, ideas, monitors one uses, the better. There is no need for overcomplicating things. An example: OK, it is 4 days today but we just had a 774 LOD....
In downturns, bullish divergences are still tradeable, but in general they are only good for bounces. Of course, one of them will always turn out to be the real thing, but which one? --It's better to trade with the trend and bypass the bottom fishing until the trend reverse. Does it lag? Certainly, but who cares?
submitted for your amusement: Evening of Thursday, December 5, 1996. Greenspan delivered his famous "irrational exuburence" speech. the great time machine marches backwards The price range that week for the S&P 500 cash was 761.75 High 726.89 Low